Meta, the U.S. technology company, will receive its first antitrust fine from the European Union in the coming weeks. The penalty is due to the linking of its classified ads service Marketplace with the social network Facebook, sources close to the matter told Reuters.
The European Commission has been investigating Meta for more than a year for giving an unfair advantage to Facebook Marketplace, a classified ads service is integrated into Facebook's main platform, which, according to the Commission, constitutes an abuse of a dominant position. In addition, the EU accuses Meta of imposing unfair trading conditions on competing online classified ad services that advertise on Facebook or Instagram. The authorities consider that these practices limit fair competition and may harm other players in the classified ads market.
The fine could amount to as much as $13.4 billion, equivalent to 10% of Meta's global revenues in 2023. This figure is based on the maximum limit that the EU can impose in cases of violation of competition rules. The Commission's final decision is expected to be issued in September or October, before Margrethe Vestager, the EU's antitrust chief, leaves office in November. However, this timeline could still be subject to change due to the complexity of the case and the need for a thorough analysis.
The European Commission has not officially commented on the case so far. For its part, Meta has denied the allegations and defended its business practices. “The European Commission's allegations are without merit,” said Matt Pollard, a company spokesman. “We continue to work constructively with regulators to demonstrate that our product developments favor the consumer and promote competition,” he added.
This case marks a significant moment in competition oversight within the European Union, especially in the area of large technology companies. The resolution of the case could set important precedents for future regulation and antitrust actions in the sector.
