Meta Platforms is poised to receive its first EU antitrust fine in a few weeks for tying its classified advertisements service, Marketplace, with its Facebook social network, according to sources with direct knowledge of the matter. This action by the European Commission comes over a year and a half after it accused the U.S. tech giant of giving Facebook Marketplace an unfair advantage by bundling it with Facebook.
The EU competition watchdog also accused Meta of abusing its dominance by unilaterally imposing unfair trading conditions on competing online classified ads services that advertise on Facebook or Instagram. Meta could face a fine of up to $13.4 billion, equivalent to 10% of its 2023 global revenue, although EU fines are typically much lower than the maximum limit.
The Commission is expected to issue its decision in September or October, before EU antitrust chief Margrethe Vestager leaves office in November, although the timing could still change. The Commission declined to comment on the matter.
Meta reiterated its previous stance. “The claims made by the European Commission are without foundation. We continue to work constructively with regulatory authorities to demonstrate that our product innovation is pro-consumer and pro-competitive,” said Meta spokesperson Matt Pollard.
Last year, Meta attempted to settle the EU investigation by limiting the use of competitors’ advertising data for Facebook Marketplace, but this concession was rejected by the EU enforcer. A similar offer was accepted by the UK competition regulator.
Additionally, the Commission recently charged Meta with failing to comply with landmark tech rules due to its new pay-or-consent advertising model introduced in November.
