Meta Platforms Faces A Looming EU Antitrust Fine, Braces For Market Turbulence Yet Surprises With A Steady 28% Year-To-Date Gain

• Meta Platforms is set to receive its first EU antitrust fine for allegedly abusing its dominant market position.
• This could amount to a $13.4 billion fine.
• The stock still has the potential to increase its 28% year-to-date gains achieved so far.

Meta Platforms Inc. META is about to face its first EU antitrust fine. The penalty is due to claims that Meta unfairly combined its Marketplace with Facebook, using its dominant position to push out competitors in the classified ads market.

The European Commission has criticized Meta for creating conditions that disadvantage its rivals, which is seen as an abuse of market power.

These actions have raised legal concerns and led the Commission to consider imposing a substantial fine, potentially reaching $13.4 billion, which would be 10% of Meta's global revenue for 2023.

While the EU has never imposed the maximum penalty, this amount highlights how seriously regulators view the violation.

To appease the European Commission, Meta suggested limiting how competing advertisers' data is used in its Facebook Marketplace, but this proposal was rejected, paving the way for a likely significant penalty.

A decision is expected by September or October, and investors are preparing for significant consequences.

Meta's financial performance and stock trajectory have clearly been affected by uncertainty. Recently, Meta's shares have seen significant declines, mirroring broader market trends.

The stock opened with a 3% drop and closed 5% lower on Wednesday, followed by a 2% drop on Thursday.

These consecutive down days have pushed the stock price closer to its 200-day simple moving average, a level that could offer strong support and help stabilize the stock.

Despite these challenges, since April 8, Meta's stock has shown resilience, fluctuating between $414 and $542 as it goes through a consolidation phase.

To break out of this range, the stock will need strong momentum, which may come from a rebound off its current support levels.

Interestingly, despite market challenges and regulatory issues, Meta's stock has posted an impressive 28% gain over the year, reflecting its lasting appeal and investor confidence.

After the closing bell on Thursday, July 25, the stock closed at $453.41, trading down by 1.70%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.