Meta is once again in troubled waters in the European Union. The EU is investigating Meta over concerns that it may have unfairly added its Facebook social network to its Marketplace service. It gives Marketplace an unfair advantage in the online marketplace space, said the regulator. Meta could face hefty fines in the EU over Marketplace competition if found guilty.
Meta is once again on the EU’s radar for unfair Marketplace competition
According to Financial Times, Meta could be facing huge fines in the EU for unfair Marketplace competition. The EU claims that Meta is dominating the classified advertising market using unfair tactics. The competition watchdog is concerned that Meta has given Marketplace an unfair advantage by integrating it into the Facebook social network.
The integration provides Marketplace a much wider reach than the competitors. Furthermore, the regulator is also concerned that Meta may be using user data from Facebook to offer Marketplace sellers an advantage. The EU suggests that Meta accessed data from businesses for free to then sell ads to users. This gives the company a predatory advantage over its competitors.
Notably, the EU launched this antitrust probe in 2019 after accusations from rival brands. The other tech companies claimed that Facebook was abusing its dominant position by providing free services while profiting from user data. Furthermore, in December 2022, the watchdog offered initial findings that Meta was distorting competition. These accusations particularly mentioned the online classified ads market.
Meta could face fines of up to 10 percent of its global revenue for Marketplace competition
The report further mentions that the EU could fine Meta for up to 10 percent of its global revenue if found guilty. The company’s global revenue in 2023 was reportedly around $135 billion. However, the overall fine could be much smaller, only time will tell. The source says the regulator’s decision on the matter could arrive as early as October. Almost certainly, Meta will appeal whatever the fines will be placed.
Notably, the EU’s latest investigation on Meta comes amid a period of increased antitrust fines against big tech giants. Just earlier today, Apple got hit with 62 million Euros EU class action for unfair charges.
2024-09-19 15:10:19