META under regulatory pressure in EuropeMETA under regulatory pressure in Europe: the social media debate reopens risks for the sector
By Ion Jauregui – Analyst at ActivTrades
The technology sector has once again moved to the center of the European political debate following strong criticism from Telegram founder Pavel Durov of the Spanish government’s plan to limit access to social media for minors under 16 and to toughen the criminal liability of executives for content considered harmful or hate speech. A position that was also joined by Elon Musk, owner of X, increasing tensions between regulators and major digital platforms.
Although media attention has focused on Telegram, the implications of the debate directly affect giants such as Meta Platforms, Alphabet, Snap, and TikTok, whose shares reacted with market declines amid rising regulatory uncertainty. In Meta’s case, the stock fell by more than 3% during the session, reflecting market sensitivity to any measure that could affect its business model based on algorithms, segmentation, and advertising monetization.
From a fundamental perspective, Meta faces a double risk in Europe. On the one hand, the possible restriction of access for minors could impact active user metrics and future user acquisition. On the other, the criminalization of the use of algorithms considered amplifiers of harmful content introduces a significant legal risk, which could force structural changes in the way content is distributed, directly affecting engagement and, by extension, advertising revenues.
This context aligns with a broader trend in Europe, where countries such as France, the United Kingdom, Greece, and more recently Australia have hardened their stance toward social media. For Meta, which has already had to adapt to the framework of the Digital Services Act (DSA) and the Digital Markets Act (DMA), the European regulatory environment continues to be a medium-term pressure factor.
Technical analysis of Meta Platforms (META)
From a technical standpoint, Meta shows signs of fatigue after the strong bullish rally of 2024 and 2025. On the daily chart, the price has lost momentum after setting recent highs, generating a correction that coincides with increased regulatory noise. After the highs of this year reached at the end of January, trading above 739, the stock experienced a sharp correction following the liquidation of positions after positive company results. Current regulatory news does not support its performance in Spain or the broader European trend, but we can observe that the long-term move has caused the price to fluctuate between the ceiling at 747.90 dollars and the floor at 579.04 dollars, with its midpoint—the point of control—around 666.15 dollars.
The current move is testing the 50-day moving average, creating a zone of indecision after a double moving average crossover that appears to be correcting the stock upward. The RSI has exited a very high overbought zone and is pointing toward consolidation, while the MACD is showing a contraction in bullish momentum, although without a clear signal of a long-term trend change. This could be revealing a sideways movement in the stock ahead of the quarterly earnings report. A loss of the current support level could open the door to deeper corrections if the 100-session moving average fails to hold. The resistance at recent highs has established itself as a rejection zone with high volume, now acting as a particularly important ceiling.
Regulatory tensions could affect results
Meta presents a long-term sideways structure with underlying bullish phases, but the European regulatory context acts as a catalyst for short- and medium-term corrections. As long as the price respects key support levels, the bias remains constructive; however, a more aggressive regulatory escalation could prolong the consolidation phase and increase the stock’s volatility.
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