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The struggles for social media giant company Meta seems not to have an end as it got another hit. Recently, the Justice Ministry of Russia reported putting Meta in its “list of extremist organizations.” This blow from the Russian government might not result in any good for the company.
Meta is not the first to face the rage of the Russian institution. Earlier it’s popular platforms—Facebook and Instagram—were restricted from access. Now the Russian court went on to rule their parent company in the list accusing them of engaging in activities liable to put it under the bracket of extremism.
The action was said to come in the wake of a campaign in Russia against social media platforms belonging to the Western countries.
Meta took an action in response while going to file for an appeal in a Moscow court. The company asked to repeal the abrupt ban but the request was rejected.
Mark Zuckerberg’s company was claimed to be involved in the notion dubbed ‘Russophobia’. Allegedly the company is claimed to allow citizens belonging to other countries and provoke them to be a part of violence against Russia.
Meta stock price has already shredded more than 66% of its value year to date. Currently it is trading at about 111.41 USD.
In addition to Russia, Meta is taking scorching legal charges from the United Kingdom as well. UK put charges against the company for the unsustainable harvesting of users personal data said to be collected for targeted advertisements.
The plaintiff alleged that Meta’s social media platform Facebook has violated the general data protection regulations. She added that the platform has processed her data and started profiling.
Clearly these legal actions meant to impact the business model of Facebook resulting in its losses, reports also noted the same. This is said to put more regulations and involve legal risks for the company in the region.
Given the market downturn due to a number of factors including worldwide macroeconomic situation, interest rates hike by Federal Reserves, looming recession, etc. Meta got heavy impacts. This could be evident from its recent layoffs of over 11,000 employees.
The layoffs directly affected the company’s most anticipated metaverse project, since most people were reduced from Reality Labs. The firm is responsible for looking over the hardware and software parts of the project, Quest and Quest Pro and Horizon Worlds respectively.
Moreover, there were rumors, amidst these havoc for the company, that CEO Mark Zuckerberg would be leaving his post. However, it would be noteworthy that the multi billion dollar project of the Metaverse was his idea, and it would not get affected following this decision.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
