European Regulators Could Fine Meta and Upend Its Data Collection Policies; Maintaining FVE

The Wall Street Journal has reported that Meta Platforms could be held accountable for not complying with the General Data Protection Regulation, the European privacy rules that went into effect in 2018. The European Data Protection Board confirmed that it has reached a decision but will not disclose it for at least a month. While Meta is likely to appeal in what the Journal points out will probably be a lengthy process, we think the firm could ultimately be liable for up to $13 billion in fines (around 4% of revenue since the rules went into effect) or up to 2% of our $260 fair value estimate.