New York, Feb 17, 2026, 05:30 EST — Premarket
- Meta shares were down about 1% in premarket trading as Spain ordered prosecutors to investigate alleged AI-generated child abuse material on major platforms
- The move adds fresh regulatory pressure in Europe on big social-media groups and their AI tools
- Traders are watching for company responses and any next steps from Spanish prosecutors as U.S. markets reopen
Meta Platforms Inc shares fell nearly 1% in U.S. premarket trading on Tuesday after Spain ordered prosecutors to investigate Meta, X and TikTok over allegations of AI-generated child sexual abuse material spreading on their platforms. Meta traded at $633.51 in premarket, down $6.26 from the prior close of $639.77, according to Public.com data. (Public)
The headline matters because European officials are tightening scrutiny of online platforms just as generative AI tools make it easier to create and circulate synthetic images at scale. For ad-driven groups like Meta, tougher enforcement can translate into higher moderation costs, legal risk and constraints on product rollouts.
It also lands ahead of the first full U.S. session after the long weekend, when liquidity tends to return quickly and traders punish stocks with new regulatory risk.
Spanish Prime Minister Pedro Sanchez said the government would ask prosecutors to investigate possible offences linked to the “creation and dissemination” of child pornography using AI, and he accused the platforms of undermining children’s rights. Meta, X and TikTok did not immediately respond to emailed requests for comment, Reuters reported. (Investing)
Pressure is building beyond Spain. Ireland’s Data Protection Commission said it had opened a formal investigation into X’s Grok chatbot over personal data processing and its potential to produce harmful sexualised images and video, including of children, and noted it can levy fines of up to 4% of global revenue under the EU’s General Data Protection Regulation, the bloc’s main data privacy law. (Reuters)
For Meta, the immediate concern is not just reputational damage. A prosecutor-led probe can pull in internal systems, recommendation design and how quickly a platform removes illegal content, all areas that carry cost and political heat.
The competitive angle is awkward too. Spain named Meta alongside X and TikTok, underscoring how regulators increasingly treat the biggest consumer platforms as a single risk bucket when AI tools are involved.
There is a big “but.” Prosecutor reviews can drag on and do not always end with charges, and the companies could argue they already run safeguards and rapid takedown systems. Still, a tougher line on AI creation tools or distribution can force more spending and slower feature launches.
Investors will be listening for any comment from Meta on the Spanish move and for signs of whether the probe broadens into wider EU action. Moves in peers tied to social media and digital ads could also set the tone.
