Meta Platforms shares fell approximately 1% in pre-market trading on February 17, 2026. The decline follows a Spanish government order for prosecutors to investigate the alleged distribution of AI-generated child abuse material on Meta, X, and TikTok.
This investigation intensifies European regulatory pressure regarding the moderation of synthetic images. The probe signals potential operational challenges for Meta, including rising moderation costs and heightened legal risks.
Analysts suggest the investigation could also restrict the rollout of future AI-powered products and features. Investors are monitoring Meta’s official response as U.S. markets reopen following a holiday weekend.