Mark Zuckerberg backed Trump, and now he wants something in return. After Donald Trump’s return to the White House, Meta Platforms (META) quickly shifted its tone. Zuckerberg scrapped Meta’s diversity team, dropped its fact-checking program, and brought Trump ally and UFC boss Dana White onto the company’s board. Meta decided to cooperate with those in power, especially since they could help the company with its increasing European issues.
What Is the Regulatory Fuss All About?
A regulatory crackdown from the European Union could reshape how Facebook and Instagram make money.
At the center is the EU’s new Digital Markets Act. It aims to moderate Big Tech’s power by forcing companies like Meta to offer users more control over their personal data, specifically, the choice to use apps without being tracked and targeted with personalized ads. That hits Meta right at its advertising business. Europe makes up about a quarter of Meta’s revenue.
The European Commission is expected to fine Meta and possibly order the company to change its operation in the EU. Meta says that’s unfair and goes beyond what the law requires. And it’s not just about money; If Meta is forced to offer its products without personalized ads or any ads at all, it risks breaking its entire business model in Europe.
“You’ve Got a Friend” (in Washington)
According to a report in The Wall Street Journal, people familiar with the talks say Meta has asked the Trump administration to pressure the EU to back off. The timing is no accident. The White House is getting ready to hit the EU with new tariffs on tech-related trade, and Meta wants its issue added to the list of complaints. Meta claims that Europe unfairly targets successful American companies while giving Chinese and European rivals a pass.
In February, Trump signed an executive order threatening tariffs over “burdensome” foreign tech laws. Now, his trade officials are raising concerns with EU representatives, including about the Digital Markets Act.
What Is in Stake?
However, the EU isn’t backing down yet. Officials say their laws apply equally to everyone. But behind the scenes, some in Brussels are nervous about triggering a full-blown tech trade war with Washington, especially now.
This is bigger than Meta. Apple (AAPL) also faces heat from EU regulators under the same law. The real question here is who sets the rules of the internet. Is it Brussels, Washington, or Silicon Valley?
Meta used to say it stood above politics. Now, it’s deep in it. The company built a global empire on free services paid for by tracking users, but that model is under attack abroad. Nevertheless, at home, Meta is making new and powerful friends.
Is META a Good Stock to Buy?
Turning to Wall Street, Meta Platforms is considered a Strong Buy. The average price target for META stock is $761.41, implying a 32.11% upside potential.
