Facebook’s share price is facing headwinds this Thursday, as hearing begins into a review of an August order to suspend Facebook user data flows from the EU to the US, made by the highest court in Europe.
Ireland’s Data Protection Commission had in August, suspended the data flow in response to a court order that declared the data flow operation known as Privacy Shield to be invalid. However, an appeal launched by Facebook resulted in a High Court in Ireland granting a reprieve from the court order, pending a review of the decision, which Facebook says will affect its business adversely.
Facebook and other big tech companies are facing unprecedented scrutiny and legal action on several fronts, all of which accuse Facebook, Google and Amazon of using their strength and market standing to stifle competing brands.
Texas and 9 other US states are launching a lawsuit against Facebook, accusing the company of conniving with Google, its age-long competitor in the advertising business, to provide an advertising process that would see FB’s user ads also showing up on pages of Google partner companies. The lawsuit alleges that this was aimed at totally dominating the market space in online ads and that it constitutes a breach of antitrust laws.
Facebook’s share price is currently trading at +0.51%, giving up a lot of intraday gains in the process.
The Facebook share price move is making attempts at gaining the upside from a bounce on the ascending channel’s lower boundary on the daily chart. This attempt is facing resistance at 277.53. A break above this price allows the Facebook share price action to resume its push towards the 291.89 resistance, where the channel’s upper edge is located. The 26 August high at 304.69 could await buyers if they can surmount 291.89, which breaks the channel to the upside.
On the other hand, rejection at 277.53 puts the lower edge of the channel at risk. A breakdown initiates a drop towards the 14 August and 30 October low at 258.91, with the 24 September low at 246.49 also in view for sellers.
