New York, Feb 17, 2026, 05:30 EST — Premarket
- Meta shares slipped roughly 1% before the bell after Spain directed prosecutors to probe claims of AI-generated child abuse content showing up on major platforms.
- That step ramps up regulatory scrutiny in Europe targeting major social-media companies and their AI products.
- With U.S. markets open again, traders are eyeing company statements and any moves from Spanish prosecutors.
Shares of Meta Platforms Inc slipped almost 1% in U.S. premarket trading Tuesday, following news that Spain directed prosecutors to look into Meta, X, and TikTok after allegations surfaced about AI-generated child sexual abuse material circulating on their sites. Meta changed hands at $633.51 premarket—a drop of $6.26 from Monday’s $639.77 close, Public.com data showed. 1
It’s a headline that lands as European regulators ramp up checks on online platforms, right when generative AI is making the mass production of synthetic images almost effortless. For Meta and other ad-funded players, stricter enforcement spells pricier moderation, more legal headaches, and potential delays for new products.
The timing comes just before Wall Street’s first full session back from the long weekend—typically a period where trading liquidity rebounds fast, and stocks carrying fresh regulatory risk often take a hit from traders.
Spanish Prime Minister Pedro Sanchez said the government plans to call on prosecutors to look into possible crimes tied to the “creation and dissemination” of child pornography involving AI. He also accused the platforms of eroding children’s rights. Reuters reported that Meta, X, and TikTok didn’t immediately reply to emailed questions. 2
Spain isn’t the only one turning up the heat. Ireland’s Data Protection Commission has launched a formal probe into X’s Grok chatbot, zeroing in on how it handles personal data and whether it can generate explicit sexual images or videos — children included. The regulator said it’s empowered to hit companies with fines as high as 4% of global revenue under the EU’s General Data Protection Regulation, the region’s flagship privacy rule. 3
Meta faces more than just a hit to its image right now. A probe driven by prosecutors can dig into everything from the company’s internal systems and recommendation algorithms to the speed at which it takes down illegal content—touchy subjects that bring both financial and political risk.
The competition piece is tricky. Spain put Meta in the same group as X and TikTok, highlighting how regulators are now lumping major consumer platforms together as one risk category when it comes to AI tools.
There’s a catch. Prosecutor reviews often stretch out, and sometimes charges never materialize. Companies, for their part, might point to existing safeguards and fast takedown systems. Even so, ramped-up scrutiny on AI tools or how they’re distributed could mean higher costs and delays rolling out new features.
Investors are waiting to hear if Meta addresses the Spanish development, or hints at whether the probe could spill over into a broader EU response. Moves in other social media and digital advertising names could help shape sentiment, too.
