Meta Faces First EU Antitrust Fine Over Facebook Marketplace Integration

Meta Platforms is on the brink of receiving its first European Union antitrust fine, according to sources familiar with the matter. The fine, expected to be issued in the coming weeks, pertains to Meta’s practice of tying its classified advertisements service, Facebook Marketplace, with its widely-used social network, Facebook.

The European Commission, after an investigation that began over a year and a half ago, accused the American tech giant of unfairly bundling Facebook Marketplace with its social media platform, thus providing the ad service an undue advantage. The Commission also alleged that Meta leveraged its dominant market position to unilaterally impose unfair trading conditions on competing online classified ad services that advertise on Facebook and Instagram.

Read more: Dutch Competition Regulator Confronts Meta Over ‘Free’ Subscriptions

According to Reuters, Meta could potentially face a fine as high as $13.4 billion, which represents 10% of its global revenue for 2023. However, EU fines typically fall below this maximum threshold. The decision is anticipated to be announced in September or October, before EU antitrust chief Margrethe Vestager steps down in November, though the exact timing remains uncertain.

Meta has consistently denied the allegations. “The claims made by the European Commission are without foundation. We continue to work constructively with regulatory authorities to demonstrate that our product innovation is pro-consumer and pro-competitive,” said Meta spokesperson Matt Pollard.

In an attempt to resolve the EU investigation last year, Meta offered to limit the use of competitors’ advertising data for Facebook Marketplace. This proposal, however, was rejected by the European Commission. Notably, a similar offer had been accepted by the U.K. competition regulator.

Source: Reuters