Meta Weighs Political Ad Ban In Wake Of Tougher EU Regulations
Meta Platforms, Inc (NASDAQ: META) is weighing a company-wide ban on political advertising in Europe.
The ban follows concerns over its social networking platforms like Facebook and Instagram failing to comply with forthcoming EU regulations that target online campaigning, Financial Times reports.
CEO Mark Zuckerberg is concerned that the definition of political ads under the plan will be so broad that it will be easier to refuse all paid-for political campaigns on the company’s sites.
Also, users were largely uninterested in such content, and revenues generated from political ads are small compared with its broader business.
Between 2019 and 2020, Meta earned under $800 million in revenue from political advertising in the U.S., according to Insider Intelligence, less than 1% of its total advertising revenue over the period.
In the wake of the U.S. 2016 election, social media platforms faced flak for failing to clamp down on misinformation and conspiracies.
Zuckerberg has refused to fact-check political advertising.
Under the EU proposals, platforms like Facebook and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google will have to raise transparency for carrying political advertising, like showing how much ads cost, who paid them, and how many people viewed the content.
One EU official aware of Meta’s internal discussions claimed that Meta’s move aimed to put pressure on the EU to narrow its definition of political advertising.
Price Action: META shares traded higher by 0.14% at $205.63 premarket on the last check Friday.
Photo via Wikimedia Commons
Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
This article Meta Weighs Political Ad Ban In Wake Of Tougher EU Regulations originally appeared on Benzinga.com
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.