Meta could face massive EU fines over Marketplace competition
Meta is once again at risk of getting fined heavily by the European Commission. The bloc's regulatory arm is preparing its findings that Meta linked its Marketplace service to Facebook to undermine competitors, the Financial Times reports, citing sources familiar with the case. If found guilty, Meta could be on the hook for 10 percent of its global annual revenue — a number that reached almost $135 billion last year. However, the fine could be much smaller, and Meta will almost certainly appeal it. The Commission launched its initial probe in 2019, announcing its preliminary findings three years later that "Meta ties its dominant social network Facebook to its online classified ad services called Facebook Marketplace," Margrethe Vestager, executive vice-president in charge of competition policy, stated at the time. "Furthermore, we are concerned that Meta imposed unfair trading conditions, allowing it to use of data on competing online classified ad services. If confirmed, Meta's practices would be illegal under our competition rules." Meta faces other investigations from the Commission into its election policies, addiction and safety concerns for minors and its consent or pay model. The news comes at a transitionary time for the European Commission, with President Ursula von der Leyen announcing her new team just yesterday. The shakeup for her second term will see Margrethe Vestager, head of competition for the last decade, replaced by Teresa Ribera. Reports that Vestiger would be stepping down this year first surfaced in August.This article originally appeared on Engadget at https://www.engadget.com/big-tech/meta-could-face-massive-eu-fines-over-marketplace-competition-113033743.html?src=rss
Meta is once again at risk of getting fined heavily by the European Commission. The bloc's regulatory arm is preparing its findings that Meta linked its Marketplace service to Facebook to undermine competitors, the Financial Times reports, citing sources familiar with the case.
If found guilty, Meta could be on the hook for 10 percent of its global annual revenue — a number that reached almost $135 billion last year. However, the fine could be much smaller, and Meta will almost certainly appeal it.
The Commission launched its initial probe in 2019, announcing its preliminary findings three years later that "Meta ties its dominant social network Facebook to its online classified ad services called Facebook Marketplace," Margrethe Vestager, executive vice-president in charge of competition policy, stated at the time. "Furthermore, we are concerned that Meta imposed unfair trading conditions, allowing it to use of data on competing online classified ad services. If confirmed, Meta's practices would be illegal under our competition rules." Meta faces other investigations from the Commission into its election policies, addiction and safety concerns for minors and its consent or pay model.
The news comes at a transitionary time for the European Commission, with President Ursula von der Leyen announcing her new team just yesterday. The shakeup for her second term will see Margrethe Vestager, head of competition for the last decade, replaced by Teresa Ribera. Reports that Vestiger would be stepping down this year first surfaced in August.This article originally appeared on Engadget at https://www.engadget.com/big-tech/meta-could-face-massive-eu-fines-over-marketplace-competition-113033743.html?src=rss
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