Shares of Snap Inc (SNAP) plunged 5.01% in intraday trading on Friday, as investors reacted to news of increased regulatory scrutiny from the European Union. The sharp decline comes amid concerns over potential compliance issues and possible financial implications for the social media company.

The European Commission announced it is examining the safeguards for minors on several major digital platforms, including Snapchat, under the Digital Services Act. This move by EU regulators has raised concerns among investors about potential regulatory challenges and costs that Snap Inc might face in ensuring compliance with EU standards for protecting young users.

The scrutiny is part of a broader investigation that also includes other tech giants such as YouTube, Apple's App Store, and Google Play. However, the specific mention of Snapchat in this regulatory probe appears to have hit Snap Inc's stock particularly hard, given the platform's popularity among younger users. Investors are likely weighing the potential impact of stricter regulations on Snap's user engagement and advertising revenue, which could affect the company's growth prospects in the important European market.