Meta Plunges 3.93% on EU Antitrust Fine

On April 4, 2025, Meta's stock experienced a significant drop of 3.93% in pre-market trading, reflecting investor concerns and market reactions to recent developments.

Meta has been fined 7.98 billion euros by the European Union for bundling its Facebook Marketplace service with its extensive social network, marking the first time the tech giant has faced antitrust penalties from the EU. The EU Commission has ordered Meta to cease linking its classified ad service with Facebook's social media platform and to avoid imposing unfair trading conditions on competitors' second-hand goods platforms. This decision comes after an investigation into how Meta leverages Facebook's billions of users to outcompete rivals, including using data from competitors advertising on Facebook to enhance its Marketplace service.

Meta has announced that it will appeal the decision, a process that could take several years. The company argues that the penalty "ignores the reality of the thriving European market" and "protects large existing companies." This regulatory action is part of a broader trend of increased scrutiny on tech giants, with the EU considering more stringent remedies, including potential structural solutions similar to those being discussed for Google in the U.S.

In addition to regulatory challenges, Meta is also navigating significant changes in its leadership. Joelle Pineau, Meta's AI research vice president, has announced her departure on May 30, 2025. Pineau has been a key figure in Meta's AI initiatives, including the Llama series and PyTorch projects. Her departure comes at a critical time as Meta prepares for the LlamaCon AI conference on April 29, 2025, and continues to invest heavily in AI, with plans to spend $650 billion in 2025. Pineau's exit has raised questions about Meta's strategic direction and the future of its AI projects, particularly the upcoming Llama 4 model, which is expected to feature advanced reasoning capabilities and integration with web browsers and other tools.