Mounting Challenges Weigh on Meta’s European Operations

Meta Platforms, Inc. finds itself navigating a confluence of regulatory, legal, and internal governance issues. Recent developments from an Austrian court ruling, a sudden board departure, and fresh allegations concerning advertising practices are applying significant pressure on the social media giant's operational model within the European Union.

A ruling from Austria's Supreme Court represents a substantial legal challenge. The court declared Meta's practice of deploying personalized advertising without obtaining explicit user consent to be unlawful. Furthermore, the company is compelled to provide data privacy activist Max Schrems with complete access to all his collected data by December 31, 2025.

This judgment is enforceable across the entire EU. Meta's defense, which claimed the data in question constituted trade secrets, was rejected by the court. The decision threatens the core of Meta's European advertising business, which relies heavily on targeted user engagement, forcing the company to urgently reconsider its compliance framework.

Board Member Exits Amid Advertising Integrity Concerns

In a separate but concurrent development, Dina Powell McCormick resigned from Meta's board of directors effective immediately. The former advisor to President Trump had only been appointed to the position in April 2025. A company statement indicated the seat would remain vacant for the time being.

Should investors sell immediately? Or is it worth buying Meta?

Adding to the company's woes, a Reuters investigation cited internal documents suggesting Meta knowingly derived approximately $3 billion in annual ad revenue from China-based operations that were linked to fraudulent activities. This figure represents nearly 19 percent of the region's advertising income for the company. These reports raise serious questions about Meta's internal compliance protocols and the overall quality control of its advertising inventory.

Analyst Adjusts Target Amid Consolidation

On the financial front, Wedbush analyst Scott Devitt adjusted his outlook on December 19, lowering the price target for Meta shares from $920 to $880. He maintained his "Outperform" rating on the equity. The stock concluded the most recent trading session at $658.77, continuing to trade within a consolidation pattern around the $660 level, positioned between its key moving averages.

Path Forward Under Scrutiny

The Austrian court's decision imposes a tight deadline, with the compliance clock now ticking down to just eleven days. Simultaneously, the allegations of systemic ad fraud risk eroding trust among business clients. Despite these headwinds, analyst sentiment remains predominantly positive: 92 percent of the 71 current ratings recommend "Buy," with a median price target of $832.50. The immediate challenge for Meta's management is to demonstrate a clear and effective strategy for adapting to the evolving regulatory landscape in Europe while simultaneously strengthening internal oversight and controls across its global advertising operations.