The European Union is ready to fine Meta heavily for giving unfair advantage to its Marketplace marketplace.

According to media reports, Meta could face a maximum fine of $13.4 billion – equivalent to 10% of its global revenue in 2023 – for linking Facebook and Marketplace.

Since December 2022, statements from the European Commission (EC) have highlighted two business practices by Meta that are alleged to violate antitrust regulations.

Meta is facing multiple investigations within the European Union. (Source: Reuters)

First, Facebook automatically gives users access to Marketplace without the option to opt out of the service.

With this behavior, the EC argues that Marketplace has gained a significant distribution advantage that no competitor can match.

The second issue raised by the EC is how Meta handles its Marketplace competitors.

While other services may promote themselves by advertising on Meta's platforms like Facebook and Instagram, Meta's terms of service allow the company to collect data about these advertising campaigns and then use that data to benefit Marketplace.

According to the EC's press release at the time, "if confirmed, these actions would violate Article 102 of the Treaty on the Functioning of the EU, which prohibits the abuse of dominant market position."

The EC is likely to announce its decision in September or October, before the term of antitrust chief Margrethe Vestager ends.

However, a Meta spokesperson asserted that the EC's allegations were unfounded and that the company would continue to cooperate with regulators to demonstrate that its products support consumers and competition.

If Meta is fined for Marketplace, it would be the company's first antitrust penalty in the EU, but it may not be the last, as Mark Zuckerberg's company is facing numerous other investigations.

On July 1st, the EC provisionally determined that Meta violated the EU's Digital Markets Act (DMA) due to its user fee model, in which users pay a monthly fee to avoid data collection and use an ad-free version, or agree to share personal data for targeted advertising in order to continue using the free service.

Meta has become the second company to be accused of violating the EU's DMA (Discrimination Action Act), following Apple. This act sets new rules for some of the world's largest tech companies and helps regulators quickly address alleged anti-competitive practices.

Source: https://baoquocte.vn/lien-minh-chau-au-san-sang-phat-nang-meta-vi-cung-cap-loi-the-khong-cong-bang-cho-cho-marketplace-280502.html