• Front Research
  • Posts
  • Meta Risks EU Antitrust Fines Over Free Ads Practices

Meta Risks EU Antitrust Fines Over Free Ads Practices

Get update on the latest in tech, 5-minute read!

In partnership with

MARKET

Market comment

S&P 500 Peaks Amid Uncertainty Ahead of Anticipated Fed Rate Cut

Setting a new all-time high, the S&P 500 finished flat, signaling a 50 basis points cut ahead of tomorrow's Federal Reserve's decision. The market moved with news of Microsoft's $60 billion stock buyback and a 0.1% rise in August retail sales, surpassing expectations. Meanwhile, trading places odds of a 50-basis-point rate cut at 65%.

Tech stocks on the move

Intel Scores Big Amazon Deal, Eyes Foundry Business Spinoff

Intel Corp continues its uptrend as CEO Pat Gelsinger reveals plans for restructuring, following securing a substantial multi-year chipmaking contract from Amazon's cloud unit and a U.S. semiconductor grant. Intel aims to turn its foundry business into an independent entity with external funding and potentially public trading, while partially divesting from programmable chip unit Altera.

Airbnb Stock Rises 5.5% as Bernstein Adjusts Price Target

Airbnb's stock rose +5.5% in early trading following an adjustment in its price target from $174 to $155 by Bernstein, which retained its Outperform rating. Analysts polled by Capital IQ report an average hold rating with a price target range of $80 to $195.

TECH BRIEF

Uber has introduced a voluntary rider verification process aimed at enhancing driver safety. The feature will cross-check passenger details against third-party databases and permits the upload of government ID. Verified users will be marked with badges that are visible to drivers before accepting ride requests. This comes as a response to drivers' growing demand for greater security measures. The decision follows the banning of around 15,000 rider accounts for fraudulent activity, in a bid to boost driver confidence.

Instagram, under pressure over child safety issues, plans an extensive overhaul for users under 18. The Meta-owned app will upgrade privacy, reduce intrusive impact, and set accounts as private by default. The updates also include a 'sleep' function restricting notifications from 10 pm to 7 am, adult supervision tools, and are aimed at minimizing inappropriate contact, content, and screen time overuse. These represent some of the most wide-reaching measures by a social media app concerning teenage users.

Meta and Ray-Ban owner EssilorLuxottica have renewed their partnership for the development of multi-generational smart eyewear products. Their collaboration has been ongoing since 2019, resulting in two iterations of Ray-Ban Meta glasses, the latest offering Instagram livestreaming, better sound quality, and AI assistant that can process visual and auditory stimuli in real-time. There are also rumors of Meta potentially taking a 5% stake in EssilorLuxottica.

Workday is set to acquire Evisort, an AI-powered contract management platform. This move will enhance Workday's finance and HR software offering with AI-driven document processing tools. Evisort's technology also includes AI modules that provide document analysis for identifying errors and omissions, and document language recommendations. The firm, whose client list features high-profile companies such as Microsoft, has attracted $155.6 million in investment to date.

Meta is bracing for a substantial EU antitrust fine over allegations that it used its free Marketplace services to undermine competition in the classified ads sector. The EU's decision could be announced as soon as next month, marking one of the last cases overseen by outgoing competition chief, Margrethe Vestager. Sanctions could be as high as 10% of Meta's global annual income, which came to around $135bn in 2023. If found guilty, Meta can appeal against the ruling.

Amazon CEO Andy Jassy has announced that corporate workers will be mandatorily required to return to the office five days a week starting from January 2025. Jassy confirmed this mandate in a company memo, accentuating the benefits of in-office collaborations. Additionally, the company plans to flatten its organizational structure by reducing the management layers by the end of March 2025.

Reply

or to participate.