Facebook Shares Slump As Company Clashes with German & Israeli Regulators

German data protection regulators for Facebook have banned the company from processing personal data of WhatsApp users, deeming the new addition to its terms of usage as illegal. Facebook had introduced new terms into its WhatsApp usage policy, giving the company power to extract and utilize users’ data as it deemed fit. Users have been asked to agree to them or opt out of the service. The data protection officer for Hamburg, Johannes Caspar, says the ban is to secure the rights and freedoms of WhatsApp users throughout Germany.

In another development, the Israeli government has sanctioned the company for purchasing two companies without regulators’ consent. The Israel Competition Authority says it is considering financial sanctions on Facebook to the tune of $1.8million for performing two acquisitions without the agency’s consent.

Facebook’s shares opened the session steeply lower but has recovered most of these losses as of the time of writing. Facebook shares are trading 0.15% higher.

Technical Outlook for Facebook

The downside gap violated the 304.69 support after yesterday’s daily candle tested this area without breaking it. The price recovery ensures that this price support stays intact, although its position remains vulnerable. A breakdown of this price level allows the bears to push towards the 296.52 support (22 April low), with 291.89 and 284.77 serving as additional targets to the south.

On the other hand, if 304.69 stays firm, it may provide pivotal support for bulls to attempt to reclaim the 315.83 resistance (8 April high), with additional barriers found at the 320.74 mark (5 May high and 61.8% Fibonacci extension) and at 330.00.

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Facebook Shares; Daily Chart

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