EU Launches In-Depth Investigation into Snapchat's Privacy Practices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy SNAP?
Source: stocktwits
- Insufficient Privacy Protections: The EU Commission suspects that Snapchat's default settings fail to provide adequate privacy, safety, and security for minors, potentially breaching the Digital Services Act (DSA) and exposing users to systemic risks.
- Investigation Initiation: The EU has formally opened proceedings to gather further evidence, including sending information requests to Snapchat and conducting interviews or inspections to assess the platform's protective measures for underage users.
- Market Reaction: Following the EU's announcement of the investigation, Snap's stock fell by 10%, reflecting investor concerns over the company's compliance capabilities, with shares down 51% year-to-date.
- Regulatory Collaboration: This investigation will be conducted in conjunction with the Dutch Digital Service Coordinator (DSC), which initiated its own inquiry into Snapchat's sales of vapes to minors in September 2025, highlighting the EU's commitment to protecting minors online.
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Analyst Views on SNAP
Wall Street analysts forecast SNAP stock price to rise
28 Analyst Rating
2 Buy
24 Hold
2 Sell
Hold
Current: 4.010
Low
7.00
Averages
9.57
High
13.00
Current: 4.010
Low
7.00
Averages
9.57
High
13.00
About SNAP
Snap Inc. is a technology company. Its flagship product, Snapchat, is a visual messaging application that enhances relationships with friends, family, and the world. Snapchat is the Company's core mobile device application and contains five tabs, complemented by additional tools that function outside the application. Snapchatters can interact with any or all the five tabs. Additionally, it offers Snapchat+, its subscription product that provides subscribers access to exclusive, experimental, and pre-release features. Snapchat+ offers a range of features, from allowing Snapchatters to customize the look and feel of their application, to giving special insights into their friendships. The Company also offers Snapchat for Web, a browser-based product that brings Snapchats calling and messaging capabilities to the Web. Its advertising products include AR Ads and Snap Ads. Snap Ads include Single Image or Video Ads, Story Ads, Collection Ads, Dynamic Ads, Commercials, and Sponsored Snaps.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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