European Commission prepares antitrust fine for Meta for up to $13.4 bln

Meta will be penalized for using Facebook

Meta will be fined by the European Commission (EC) in the coming weeks for violating antitrust laws. The fine will be the first for Meta in the EU and will be related to the linking of private classifieds service Marketplace to social network Facebook, Reuters reported citing sources.

The EC’s investigation, which began more than a year and a half ago, found that Meta was giving its Marketplace platform an advantage by linking it to Facebook. According to the regulator, this limits competition in the online classifieds market.

In addition, the EC accused Meta of abusing its dominant market position by unilaterally imposing unfavorable and unfair conditions for advertising on Facebook and Instagram by competing online ad services.

Pay even if you don’t agree

The company faces a fine of up to $13.4 billion, or 10% of its global revenue for 2023. However, as Reuters notes, the EU usually reduces the maximum sanctions limits. The commission is expected to announce its decision in September or October, before antitrust chief Margrethe Vestager steps down in November. However, the timeline could be adjusted.

Meta declined to comment on the situation, but company spokesman Matt Pollard reiterated an earlier opinion that the European Commission’s claims have no basis in fact. “We continue to work constructively with regulators to demonstrate that our products are in the best interests of consumers and promote competition,” Mr. Pollard stressed.

It should be noted that this month the EC also brought charges against Meta for violating EU digital laws, as the company effectively forced users to sign up for paid subscriptions under the new “Pay or Agree” model launched recently. The agreement involved the collection of large amounts of personal data.