Why Meta’s Stock Fall 6% Today

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In this post, we will know why Meta means Facebook stock fell more than 7% today and what is the reason behind it.

1. Meta can’t show ads using personal data, such news came

On Tuesday, a person complained that Meta cannot use its user’s data to show them advertisements, as per the rules of privacy.

2. Meta said that if Congress passes the media bill, Meta will remove news from Facebook.

Facebook parent Meta threatened on Monday to remove news from its platform if the US Congress passed a resolution aimed at making it easier for news organizations to collectively negotiate with companies such as Alphabet’s Google and Facebook.

Sources briefed on the matter said lawmakers are considering including the Journalism Competition and Protection Act in the annual Defense Bill as a way to help the struggling local news industry.

Meta spokesman Andy Stone said in a tweet that the company would be forced to consider removing the news if the law was passed “rather than submit to government-mandated negotiations that unfairly disregard any value”. is what we provide to news outlets through increased traffic and subscriptions.”

He said the proposal fails to recognize that publishers and broadcasters put content on the platform because “it benefits their bottom line – not the other way around.”

The News Media Alliance, a trade group representing newspaper publishers, is urging Congress to add the bill to the defense bill, arguing that “local papers will not tolerate many more years of Big Tech use and abuse.” can, and the time to act is dwindling.

If Congress doesn’t act soon, we risk allowing social media to become America’s de facto local newspaper.”

More than two dozen groups, including the American Civil Liberties Union, Public Knowledge and the Computer and Communications Industry Association, urged Congress on Monday not to approve the local news bill, saying it was “a nonconsensual act for publishers and broadcasters.” antitrust exemption” and argued the bill does not require “money obtained through negotiation or arbitration to be paid to journalists as well.”

A government report says a similar Australian law, which closed Facebook news feeds in the country in March 2021 after talks with big tech firms, has largely worked.

Due to these two reasons, the stock of Meta has declined.

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