Meta Stock Drops 3.77% Amid Regulatory Scrutiny

On April 3, 2025, Meta's stock experienced a 3.77% drop in pre-market trading, reflecting investor concerns and market dynamics.

Meta's CEO, Mark Zuckerberg, recently visited the White House, marking his third visit since President Trump took office. This visit comes amid ongoing discussions about American technological leadership and pending regulatory decisions, including the upcoming antitrust trial by the Federal Trade Commission. The company's frequent interactions with the Trump administration have raised eyebrows, given Zuckerberg's past support for progressive causes and his recent efforts to align Meta's policies with the administration's stance.

Meta's tax practices in Korea have also come under scrutiny. The company reported earning nearly 100 billion Korean won from its Korean operations but paid only 54 billion won in taxes. This discrepancy has sparked criticism and accusations of tax avoidance, similar to other global tech giants like Google and Netflix. The low tax payments are attributed to Meta's strategy of transferring a significant portion of its revenue to its Irish subsidiary, reducing its taxable income in Korea.

Additionally, Meta is facing scrutiny from the Senate Judiciary Subcommittee, which is set to hold a hearing to examine the company's efforts to establish a presence in China and its ties to censorship tools. Senators have raised concerns about Meta's internal efforts to engage with the Chinese government and its potential use of censorship tools, as detailed in a book by former Facebook executive Sarah Wynn-Williams. Meta has denied these allegations, stating that it does not operate in China and has abandoned its plans to enter the market.