“On Thursday, the EU fined Internet giant Meta nearly 800 million euros for violating antitrust laws by giving users of its social network Facebook automatic access to the Facebook Marketplace ad service.”, — write: www.ukrinform.ua
On Thursday, the EU fined Internet giant Meta nearly 800 million euros for violating antitrust laws by giving users of its social network Facebook automatic access to the Facebook Marketplace ad service.
The EU fined the company 797.72 million euros ($840 million), an amount which, according to the European Commission, takes into account the “duration and seriousness of the infringement” as well as the turnover of Meta and Facebook Marketplace.
Meta’s total revenue last year was around $135 billion (€125 billion).
The EC said Meta also abused its dominant position by imposing unfair trading conditions on service providers that advertise on the internet giant’s platforms.
Meta said it would appeal, saying the decision ignored “the realities of Europe’s thriving online advertising market.”
“Facebook users can choose whether or not to engage with Marketplace, and many do not. The reality is that people use Facebook Marketplace because they want to, not because they have to,” the company said in a statement.
The EC said that because Facebook Marketplace was tied to Facebook, the former had a “significant distribution advantage that competitors cannot match.”
“All Facebook users automatically have access to Facebook Marketplace and access it regularly, whether they want it or not,” the EC said in a statement.
In addition, Meta imposed unfair terms on competitors of the ad service that placed ads on Facebook and Instagram, the Commission said. This allowed it to “use ad-related data generated by other advertisers solely for the benefit of Facebook Marketplace,” the statement said.
Meta says it does not “use advertiser data for this purpose” and “has systems and controls in place to ensure this.”
“It is disappointing that the Commission has decided to take regulatory action against a free and innovative service designed to meet consumer demand,” Meta said.
According to the EU, Meta’s dominant position in the market for personal social networks imposes a special responsibility on the company to prevent its abuse by restricting competition.
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