TLDR
- A Spanish judge ordered Meta to pay €479 million to 87 digital media publishers and press agencies for improper use of personal data
- The court ruled Meta gained competitive advantage by running ads on Facebook and Instagram while breaching EU GDPR rules
- Meta’s stock dropped toward $590 as Spain opened a separate investigation into alleged hidden Android tracking practices
- The stock broke below its long-term ascending trendline and now trades beneath all major moving averages
- Technical indicators show continued bearish momentum with RSI in oversold territory and no signs of reversal
A Spanish court delivered a €479 million judgment against Meta this week. The ruling requires the company to pay 87 digital media publishers and press agencies for violations related to user data handling.
The decision centers on Meta’s advertising practices across Facebook and Instagram. According to the court statement, Meta gained competitive advantage by improperly using protected personal data from platform users. This violated the EU General Data Protection Regulation.
The lawsuit was filed by Spain’s digital press organizations. They argued Meta failed to properly handle user information when running advertisements on its platforms.
The court found that Meta Ireland, which serves as the parent company for Meta Spain, did not submit required financial accounts during legal proceedings. This lack of transparency factored into the ruling against the company.
Stock Decline Accelerates on Multiple Fronts
Meta’s shares moved toward $590 following the court decision. The decline came as Spain announced a separate parliamentary investigation into the company’s Android tracking practices.
Prime Minister Pedro Sanchez stated that no platform sits above national law. His comments added political weight to the regulatory probe. The investigation focuses on allegations that Meta used hidden mechanisms to track Android users across Facebook and Instagram without proper consent.
The timing compounded existing technical weakness in the stock. Meta has broken below the ascending trendline that supported its rally from spring through early autumn. The break triggered selling that pushed the stock through multiple support levels.
All four major exponential moving averages now trade above the current price. The 20, 50, 100, and 200-day EMAs form a resistance cluster overhead. This configuration typically signals continued downside pressure.
The Parabolic SAR indicator has stayed negative throughout November. The pattern confirms persistent selling momentum. Meta now shows a series of lower highs and lower lows on the daily chart.
Technical Structure Shows Continued Weakness
Price action is approaching the $575 to $565 zone. This area served as an accumulation base during the summer months. A break below this support could open the door to further declines.
The Relative Strength Index has entered oversold territory. However, it shows no bullish divergence that would signal a potential reversal. The lack of volume spikes suggests the market has not reached an exhaustion point yet.
Intraday charts reinforce the bearish setup. On the 30-minute timeframe, Meta continues trading beneath the Supertrend indicator. Every rally attempt toward $596 to $600 has been met with renewed selling.
The Directional Movement Index shows the negative line firmly above the positive line. This confirms downward momentum remains dominant in the short term. Traders have used each bounce as an exit opportunity rather than a chance to add long positions.
A reclaim of the $615 to $620 region would be needed to shift the technical outlook. This level aligns with the broken trendline and the 20-day EMA. Without such a move, sellers maintain structural control.
The regulatory investigation adds headline risk during a period of chart weakness. Meta is scheduled to provide testimony before Spanish authorities. The legal proceedings in Spain join ongoing scrutiny from European regulators over GDPR compliance and Digital Markets Act rules.
The latest allegations focus on tracking mechanisms on Android devices. These claims revive compliance concerns that have followed Meta across European markets. The company faces potential fines or operational restrictions depending on investigation outcomes.
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