Meta fined 798 million euros: According to the EU, Meta gives itself an unfair advantage by immediately linking its ad program, Facebook Marketplace, to Facebook.
Meta fined 798 million euros: The internet behemoth Meta was fined just under 800 million euros by the European Union for what it described as “abusive practices” in its Facebook Marketplace online classified advertisements division.
On Thursday, the European Commission of the EU imposed a fine of 797.72 million euros ($846.13 million). It accused Meta, the company that owns Facebook, of engaging in marketplace practices that unfairly favor its own ad program over rivals.
According to the commission, the benefit comes from Meta automatically linking its ad program, Facebook Marketplace, to Facebook, resulting in a “substantial distribution advantage.”
It stated that “whether they want it or not, all Facebook users automatically have access to and are regularly exposed to Facebook Marketplace.”
Meta fined 798 million euros: Furthermore, it claimed that Meta made it possible for it to “use ads-related data generated by other advertisers for the sole benefit of Facebook Marketplace” by placing unjust requirements on other classified ad service providers that offered Facebook and Instagram advertising.
Meta argued that it had “built systems and controls to ensure that” and did not “use advertisers’ data for this purpose.”
Meta stated that it would both comply with the commission’s order to stop the offending activity and file an appeal, saying, “It is disappointing that the Commission has chosen to take regulatory action against a free and innovative service built to meet consumer demand.”
The fine is the most recent in a series of severe sanctions levied against Big Tech companies for their actions in recent years by the commission, which oversees the 27-nation European Union. It is one of the top ten biggest antitrust penalties.
In addition to the turnover of Meta and Facebook Marketplace, the punishment considers the “duration and gravity of the infringement,” according to the commission.
Last year, Meta made almost 125 billion euros ($133 billion).
According to the EU, Meta has a unique obligation to avoid abusing its dominant position in the personal social network market by limiting competition.