EU may impose heavy fines on Meta for market competition

Meta is in trouble again in the European Union. The EU is investigating Meta over concerns it may have unfairly added social network Facebook to its Marketplace service. This gives Marketplace an unfair advantage in the online marketplace space, the regulator said. Meta could face hefty EU fines for competing on Marketplace if found guilty.

Meta is back on the EU radar due to unfair competition on the market

According to the Financial Times, Meta could face huge fines in the EU for unfair competition on Marketplace. The EU says Meta dominates the classifieds market by using unfair tactics. The competition watchdog is concerned that Meta gave Marketplace an unfair advantage by integrating it with social network Facebook.

The integration gives Marketplace a much broader reach than its competitors. The regulator also worries that Meta could use user data from Facebook to give Marketplace sellers an advantage. The EU suggests that Meta has been given free access to company data to then sell ads to users, giving the company a predatory advantage over its competitors.

Interestingly, the EU launched this antitrust investigation in 2019 after accusations from rival brands. The other tech companies claimed that Facebook was abusing its dominant position by offering free services while profiting from user data. Additionally, in December 2022, the watchdog presented preliminary findings that Meta was distorting competition. These accusations focused specifically on the online classifieds market.

Meta could be fined up to 10 percent of its global revenue for competing on Marketplace

The report further mentions that the EU could fine Meta up to 10 percent of its global revenue if it is found guilty. The company’s global revenue in 2023 was reportedly around $135 billion. However, the overall fine could be much lower; only time will tell. The source claims that the regulator’s decision on the matter could come as early as October. Meta will almost certainly appeal any fines.

Interestingly, the latest EU investigation into Meta comes at a time of increased antitrust fines against big tech giants. Just this morning, Apple was hit with a €62 million EU class action lawsuit for unfair fees.