Meta tumbles 6% as firm faces ad model bans in EU
Shares of Meta Platforms Inc. tumbled over 6% on Tuesday after news broke that the European Union's privacy regulators had decided that users of social media giants WhatsApp, Facebook, and Instagram should not be required to consent to tailored advertisements based on their online activity.
The Wall Street Journal noted that the EU privacy law prohibits Meta from using their terms of service as a "justification" for permitting "such advertising" and cited sources revealing that such a move by the regulators in the bloc may restrict the data that Meta could access in order to sell advertising. According to the report, the ruling was approved on Monday, but will allow the social media giant to appeal the decision.
The company's stock fell by 6.45% at 10:57 am ET.