European Commission imposes hefty fine on Meta

The European Commission has just slapped a hefty fine of €797.72 million on Meta for violating European laws. Specifically, the company has been found guilty of anti-monopoly violations related to its business practices and abuse of its dominant position.

One of the key issues highlighted by the European Commission is Meta’s mandatory linking of services like Facebook Marketplace to Facebook accounts, along with other unfair impositions on competing advertising platforms. This investigation, which began in June 2021, examined Meta’s practices in the market and its impact on competition. The findings reveal that Meta has been leveraging its market position as both a social media and advertising platform.

The European Commission believes that Meta has abused its position by forcing Facebook Marketplace sellers to link their accounts with the social network. This means that Facebook users automatically have access to the Marketplace and are regularly exposed to its content, whether they use it or not. The Commission argues that this integration gives Meta a significant advantage over its rivals and violates European laws, ultimately disadvantaging other advertising platforms.

Furthermore, the European Commission contends that Meta imposes unfair commercial conditions on other suppliers and entities using its advertising system. This includes collecting data from third-party advertising campaigns and using that information exclusively to enhance the Marketplace. These practices are seen as detrimental to other platforms.

The authorities are demanding that Meta cease these practices, both current and future ones. While Meta has yet to respond directly to these accusations, it is highly likely that the company will appeal the sanction in European courts, potentially prolonging the legal battle for several more years.