The European Commission (EU) has imposed a fine of €797.72 million on Meta for abusive practices that benefit Facebook Marketplace over competing providers.
About two years ago, EU regulators first accused Meta of “abusive practices” that gave it an unfair advantage in the marketplace. The company is accused of linking its Marketplace service to the popular social network Facebook and imposing unfair trading terms on other online classifieds service providers.
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EU competition chief Margrethe Vestager accused Meta of abusing its dominant position in the social media market “ to benefit its own Facebook Marketplace service, giving it advantages that other comparable online classifieds providers did not have. This is illegal under EU antitrust rules .”
The European Commission ordered Meta to stop this behavior, but did not specify what actions should be taken.
“We will appeal the decision,” Meta announced. “In the meantime, we will comply and work quickly and constructively to find a solution that addresses the points raised.”
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The EU ruling argues that Meta is imposing Facebook Marketplace on people who use Facebook, but Meta says that Facebook users can choose not to engage with the Marketplace service and that the ruling is based on a hypothetical potential to harm competition.
The European Commission's fine is part of a broader effort to ensure a competitive online market, where smaller providers can compete on equal terms with dominant players, such as Meta.
The main concerns center on whether Meta's practices on Facebook Marketplace may stifle competition or harm consumer choice by limiting alternatives.
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The outcome of this case could have significant implications not only for Meta, but also for other large tech operating in Europe. The EU is actively looking for ways to regulate the power of so-called Big Tech.
Source: www.theverge.com
