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Meta Could Be Fined Heavily for Linking Facebook and Marketplace

Meta Could Be Fined Heavily for Linking Facebook and Marketplace

Meta faces potential fines from the European Commission following accusations that the company leveraged its Facebook platform to promote its Marketplace service, stifling competition in the process. According to a report from Financial Times, the Commission has compiled its findings, suggesting Meta’s actions may have undermined rivals by linking Facebook to Marketplace, a feature that allows users to buy and sell items.

If found in violation, Meta could be fined up to 10 percent of its global annual revenue, which amounted to nearly $135 billion last year. However, the final fine could be significantly lower, and Meta is expected to contest any ruling against it. The company’s legal challenges have become a familiar tactic in its defense strategy in regulatory cases.

The Commission’s investigation into Meta began in 2019, and preliminary findings were shared three years later.

Margrethe Vestager, the European Commission’s executive vice-president for competition policy, indicated at the time that Meta had likely tied its “dominant social network Facebook to its online classified ad services called Facebook Marketplace.” She further raised concerns over potentially unfair trading practices, stating that Meta may have used data from rival classified ad services to gain an advantage. If proven, these actions would breach the European Union’s competition rules.

Meta is currently under scrutiny in several other regulatory cases in Europe, including those related to its election policies, safety measures for minors, and its controversial consent or pay model.

The timing of this development coincides with significant leadership changes within the European Commission. Ursula von der Leyen, the Commission’s president, announced a new team for her second term, including the replacement of Margrethe Vestager with Teresa Ribera as head of competition. Vestager’s departure, which was rumored in August, marks the end of her decade-long tenure in a position that has seen her take on numerous tech giants over antitrust concerns.

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