What is the French competition authority's probe into Meta?

The French competition authority is investigating Meta (the company that owns Facebook and Instagram) for potentially anti-competitive advertising practices. They're examining whether Meta is abusing its dominant market position in ways that harm other companies and limit fair competition in the digital advertising market. This investigation follows complaints from media companies and other advertising platforms, adding to the regulatory challenges Meta faces across Europe.

What are "walled gardens" in digital advertising?

"Walled gardens" refer to closed digital advertising ecosystems like those operated by Meta (Facebook/Instagram) and Google, where the platform controls all aspects of advertising—from user data to ad delivery and measurement. These environments don't allow for much external verification or transparency. The challenge for advertisers is that they must rely on the platform's own reporting and can't easily verify performance independently, which is why ad verification companies and independent platforms could benefit if advertisers seek more transparent alternatives.

What's the difference between "demand-side" and "sell-side" platforms?

In digital advertising, demand-side platforms (DSPs) like The Trade Desk help advertisers buy ad space efficiently across many websites and apps. They represent the "buyers" of advertising. Sell-side platforms (SSPs) like Magnite and PubMatic help publishers (websites, apps, etc.) sell their ad space to get the best prices. They represent the "sellers" of advertising. Both types of platforms could benefit from advertisers diversifying away from Meta, as they facilitate advertising on the "open internet" rather than within closed ecosystems.

How could regulatory action against Meta benefit other companies?

If Meta faces restrictions on how it can operate its advertising business, advertisers might become concerned about relying too heavily on the platform and start diversifying their spending. This could redirect billions of advertising dollars to alternative platforms, verification services, and advertising agencies that help brands navigate the changing landscape. Companies in this stock group offer various alternatives to Meta's ecosystem, from independent ad platforms to specialized advertising channels, positioning them to potentially capture some of that redirected spending.

What does "Projected Profit %" mean for these stocks?

"Projected Profit %" refers to the estimated percentage increase in a stock's price that analysts believe could occur over a certain time period. It represents potential upside based on their analysis of the company's financial health, growth prospects, and market conditions. Remember that these are projections, not guarantees—actual performance may differ significantly based on many factors including market conditions and how the regulatory situation with Meta ultimately unfolds.

15 handpicked stocks

Digital Ad Shakeup

This carefully selected group of stocks represents companies that could benefit from France's investigation into Meta's advertising practices. Our professional analysts have identified these businesses as potential winners if advertisers begin shifting budgets toward more transparent platforms and diverse ad channels.

Han Tan | Market Analyst

Updated 2 days ago | Published at juillet 11