The European fine for Facebook is “heavy” EUR 800 million

The European fine for Facebook is “heavy” EUR 800 million

The European Union has fined Meta, which owns Facebook, 800 million euros for what it called “abusive practices” involving the business of classified ads on the Marketplace network.

The European Commission imposed the penalty after its lengthy investigation found that the company abused its dominant position and engaged in anti-competitive behavior.

The commission accused Meta of stifling competition by tying its online classifieds business to its social network, automatically exposing Facebook users to the Marketplace “whether they want it or not” and foreclosing all of its potential competitors.

It also alleged that Meta imposes unfair trading terms with terms of service that authorized the company to use ad-related data generated from competing platforms for classified ads advertised on Facebook or Instagram for the benefit of Marketplace.

Meta’s practices have given it “advantages that other online classifieds service providers cannot match,” Margaret Vestager, the Commission’s executive vice-president in charge of competition policy, said in a press release. “This is illegal under EU antitrust rules. The target must stop this behavior now.”

Meta said in a statement that the decision fails to prove any “competitive harm” it allegedly caused to rivals or consumers and that it “ignores the reality of a thriving European market for online classifieds services”.

The company said the Commission ignored the fact that Facebook users can choose to “engage with Marketplace, and many do not.”

She noted that online marketplaces, including global sites such as eBay, Europe-wide platforms such as Vinted, and national services continue to grow.

Meta said it would comply with the commission’s order to end the practice and not repeat it, but indicated it would appeal.

Source: Beta

Photo: Beta_AP, Pexels