European Commission reportedly plans to investigate Meta Platforms Inc's (NASDAQ:META) Facebook and Instagram over concerns regarding Russia disinformation, with suspicions of inadequate moderation.
Regulators are alarmed by Meta's purportedly insufficient efforts to combat political advertising disinformation, risking electoral integrity, according to a report from Financial Times.
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EU officials express unease over Meta's handling of Russian interference in upcoming European elections, underlining broader concerns about misinformation spread by foreign entities.
Moreover, the accessibility of Meta's content flagging system under the EU's Digital Services Act raises apprehensions, with fears that it might not meet regulatory standards.
The investigation, spurred by Meta's report on disinformation handling and the EU's assessment, will scrutinize whether Facebook and Instagram comply with the law in placing political content.
The probe also delves into Meta's discontinuation of CrowdTangle and its tracking methods for disinformation, potentially impacting fact-checkers and journalists.
The report further noted Meta will be given a five-day window to propose mitigation measures, failing which could prompt regulatory actions under the DSA.
Meta responded, expressing readiness to cooperate and share further details of its risk mitigation efforts with the European Commission.
The probe follows the imposition of election safeguards by the regulators to mitigate online threats to electoral integrity.
Meta Platforms stock has gained more than 82% in the past 12 months. Investors can gain exposure to the stock via The Communication Services Select Sector SPDR Fund (NYSE:XLC) and Fidelity MSCI Communication Services Index ETF (NYSE:FCOM).
Price Action: META shares are trading lower by 1.1% at $438.44 in premarket at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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