TLDRs;
- Meta faces mounting global regulatory pressures as stock slips 1 percent post-market
- Meta’s subsidiary must pay Deutsche Telekom €30 million over network service dispute
- New Indian law demands social platforms remove illegal content within three hours
- Meta faces lawsuits over child exploitation and social media addiction
Shares of Meta Platforms (NASDAQ: META) dropped roughly 1% in after-hours trading Tuesday, closing near $671.01, after a series of legal and regulatory challenges shook investor confidence.
The social media giant, which owns Facebook and Instagram, is navigating a turbulent period marked by international court rulings, new government regulations, and ongoing U.S. litigation.
German Court Orders €30 Million Payment
Meta’s Edge Network Services subsidiary was ordered by a German court to pay approximately €30 million ($32.5 million) to Deutsche Telekom. The case centers on peering points, key nodes where networks exchange traffic.
Telecom operators in Europe are increasingly pushing Big Tech companies to bear more of the costs associated with broadband infrastructure expansion. Meta has publicly disagreed with the ruling and is currently evaluating its options for appeal.
EU Legal Developments Favor WhatsApp
Elsewhere in Europe, Meta received a positive development through WhatsApp. The EU’s highest court supported WhatsApp’s appeal against a privacy fine raised to €225 million ($268 million) by the European Data Protection Board.
A company spokesperson framed the decision as a win for the right to contest regulatory rulings, highlighting Meta’s commitment to defending its business practices within the European legal framework.
India’s Three-Hour Content Takedown Rule
In India, the government has drastically shortened the time allowed for social media platforms to remove unlawful content, from 36 hours to just three. The new regulation takes effect on February 20, 2026. Experts have called the timeline “practically impossible” for firms to meet.
Meta has declined to comment on the impending rule but is expected to adjust internal compliance measures to respond once the law is enforced.
U.S. Litigation Adds Pressure
Back in the United States, Meta’s legal troubles continue to mount. In Los Angeles, a lawsuit alleges that Meta and Alphabet’s YouTube designed their platforms to addict children, with CEO Mark Zuckerberg reportedly set to testify. In Santa Fe, New Mexico, another case claims Meta profited while exposing minors to sexual exploitation and mental health risks. These legal battles, combined with regulatory pressure abroad, are creating headwinds for the company, even as advertising revenue remains solid.
Meta’s stock performance demonstrates the delicate balance investors are maintaining between optimism about AI-driven growth and caution over rising operational and legal costs. Despite setbacks, the company’s AI initiatives continue to attract attention, and many analysts note that successful monetization of these tools could offset some of the regulatory and legal pressures.
Looking forward, traders are closely monitoring the U.S. nonfarm payrolls report, which could influence Mega-cap tech stocks. Meanwhile, India’s aggressive new content regulations will be a key factor for Meta’s global strategy starting February 20.
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