Why Metaplatform Stock Lagged the Market Today

The situation has been made worse by a simmering regulatory dispute across the Atlantic. meta platform (meta -0.15%) On Tuesday. As a result, the social media giant’s shares generally traded sideways during the session. S&P 500 On this day, the index rose 0.6%.

EU to be warned if fees are not reduced

For years, the 27-nation European Union has targeted American tech giants to gain influence and influence. In the EU’s latest attempt to ease this, one of its top regulators warned the company to cut certain fees for its services.

In particular, EU antitrust chief Margrethe Vestager issued a warning to Meta Platforms and its fellow Silicon Valley giants. apologize (AAPL 1.36%) We are reducing the fees we recently introduced for certain users. For previous companies, EU users would have to pay 9.99 euros ($10.87) per month for ad-free versions of the Facebook and Instagram social media sites. Subscription tiers were introduced to comply with the EU’s relatively stringent Digital Markets Act (DMA).

Meta Platform appears willing to narrow down these revenue streams. Commenting on Vestager’s move, Tim Lamb, the company’s general counsel, said Meta was willing to reduce its fee to 5.99 euros ($6.52).

limited impact at best

Meta Platforms’ proposal is clearly a first move to cushion as much as possible the financial impact of lower fees. As often happens in these regulatory battles, there will probably be a lot of wrangling until a settlement is agreed upon with the affected companies or a regulatory decision is made.

Either way, Meta Platforms relies little on European subscription fees for its business. Therefore, no matter how this story unfolds, we do not expect it to have a significant impact on our finances or operations.