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European Commission Fines Meta €797.72 Million Over Marketplace Practices
The European Commission (EC) has once again targeted a major US technology firm, imposing a substantial fine of €797.72 million (approximately $843.1 million) on Meta, the parent company of Facebook. This penalty stems from the EC’s findings regarding Meta’s imposition of its Marketplace feature on users, which the Commission argues creates unfair trading conditions for competing online classified ad services.
According to the EC, the prevalence of Meta’s Marketplace on Facebook limits visibility and accessibility for alternative classified ad providers. This effectively monopolizes the classified ads landscape on the platform, as users are primarily presented with Meta’s own offerings. The EC also highlighted that Meta’s practices disproportionately disadvantage competitors who seek to advertise on Facebook, as the company allegedly utilizes advertising data collected from these competitors solely to bolster Facebook Marketplace.
The investigation concluded that Meta holds a “dominant” position within the personal social networks market and is a key player in national online display advertising. This dominance warranted scrutiny into the company’s business practices, which the EC found to be infringing upon fair trade regulations.
The magnitude of the fine was determined based on various factors, including the duration and severity of the infractions as well as the economic impact related to Facebook Marketplace’s operations. In addition to the financial penalty, Meta is required to cease the contested practices and ensure compliance with EU regulations to prevent similar violations in the future.
Meta has expressed its dismay at the ruling, planning to appeal the decision. The company asserts that it has developed Marketplace in direct response to consumer interest and insists that its practices are in line with market expectations. Meta argues that users have the autonomy to decide whether to engage with Marketplace, claiming that many do so willingly.
Moreover, Meta contends that they do not exploit advertising data from competing services to gain a competitive advantage on Marketplace, having implemented systems designed to maintain separation between their services.
Source
www.gsmarena.com