Meta Platforms(META) The Motley Fool·2025-02-19 19:25Core Viewpoint - Meta Platforms' stock is experiencing a decline due to WhatsApp's new regulatory status in the European Union, despite a significant year-over-year increase in stock value [1][2]. Group 1: Regulatory Impact - WhatsApp has surpassed 46.8 million average monthly active users, crossing the 45 million threshold that subjects it to the EU's Digital Services Act [2]. - The European Commission confirmed that WhatsApp will now be classified as a "very large online platform," leading to stricter regulations [2][3]. - The upcoming regulations will impose stricter content moderation and monitoring policies on WhatsApp, while also enhancing user data privacy controls [3]. Group 2: Long-term Outlook - The regulatory changes for WhatsApp are not expected to significantly alter Meta's long-term outlook, as content moderation costs for messaging platforms are relatively low compared to social media [4]. - Meta is already managing the large online platform designation for its Facebook and Instagram services in the EU, indicating preparedness for regulatory compliance [4]. - Comments from EU national leaders suggest potential future easing of regulatory standards for the tech industry, which may mitigate the impact of new regulations on WhatsApp [5].