Featured Sponsor
Store | Link | Sample Product |
---|---|---|
UK Artful Impressions | Premiere Etsy Store |
Nick Clegg arrived on Facebook in 2018 as the social media company’s euro-whisperer. The hope was that the former British Deputy Prime Minister and Member of the European Parliament could woo overseas regulators and help mend the company’s image. Five years on, UK and European regulators have only gotten more aggressive.
Two bills were presented in Meta this week. First, a fine of 1.2 billion euros data privacy by the Irish Data Protection Commission. Second, an estimated $260 million loss on the forced sale of animated image search engine Giphy by the UK’s Competition and Markets Authority. The arrival of the EU Digital Services Act increases the likelihood of further action. “Very Large Online Platforms” (VLOPs) like Meta face the strictest obligations for content moderation.
Meta has received a larger fine from US regulators in the past. But they’ve never forced her to liquidate an acquisition. Yet, like the gif of Homer Simpson disappearing into a hedge, the impact of selling the giphy will be minimal.
The notion that gifs could enhance the power of Meta now seems preposterous thanks to how quickly they’ve fallen out of favor as a mode of online interaction. Gifs don’t have a place in the company’s pivot to metaverse virtual reality, and Meta has already shut down Giphy’s small advertising business. Giphy’s sale to Shutterstock, also at a loss, fits in with cuts in Meta’s “efficiency year.”
The loss is not life-threatening for a company with $40 billion in cash and marketable securities. The digital ad business in Europe and the UK is well worth the cost of complying with regulators.
Year-over-year losses from metaverse development unit Reality Labs are expected to rise this year to more than $13.7 billion. However, Meta’s EBITDA margin is expected to hit a five-year high thanks to increased revenues along with headcount reductions and other cost cuts. Clegg may not be able to change the direction of governor action. But what matters most is Meta’s ability to keep its global advertising customers happy.
Our popular premium subscriber newsletter is published twice a week. On Wednesday we analyze a hot topic of a global financial center. On Friday we analyze the major themes of the week. Please register Here.
—————————————————-
Source link
We’re happy to share our sponsored content because that’s how we monetize our site!
Article | Link |
---|---|
UK Artful Impressions | Premiere Etsy Store |
Sponsored Content | View |
ASUS Vivobook Review | View |
Ted Lasso’s MacBook Guide | View |
Alpilean Energy Boost | View |
Japanese Weight Loss | View |
MacBook Air i3 vs i5 | View |
Liberty Shield | View |