Meta Platforms’ (NASDAQ:META) apps, including Facebook and Instagram, will undergo scrutiny by European Union (EU) regulators for potential violations of EU online content rules relating to child safety. Tech companies in the EU face increasing pressure to address illegal and harmful content on their platforms under the EU’s Digital Services Act (DSA), which came into effect last year.
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The EU’s Digital Services Act (DSA) is a regulation concerning illegal content, transparent advertising, and disinformation.
Details of EU’s Investigation into META
The European Commission announced that it would launch an in-depth probe into Meta over child safety concerns. Although Meta submitted a risk assessment report in September, the EU remains concerned that Facebook and Instagram algorithms could lead to potential behavioral addictions in children and create “rabbit-hole effects.”
Additionally, the EU Commission is concerned about children accessing inappropriate content due to worries about Meta’s age-verification methods. However, the social media giant claims to have implemented over 50 tools and policies to ensure safer online experiences for young people.
Is Meta Stock a Buy or Sell?
Analysts remain bullish about META stock, with a Strong Buy consensus rating based on 36 Buys, three Holds, and two Sells. Over the past year, META has skyrocketed by more than 90%, and the average META price target of $522.49 implies an upside potential of 9.7% from current levels.
