Meta in EU antitrust sights for classified advertising practices
Meta could face a significant fine for alleged attempts to dominate the classifieds market.
The company’s advertising practices have come under fire for tying free Marketplace services to the Facebook platform, which “undercuts rivals,” EU regulators said. It’s not clear how big the fine would be, but it could amount to as much as 10% of global annual turnover, which was almost $135 billion in 2023.
In what could be the last blow EU competition commissioner Margaret Vestager must deliver to big tech companies before she steps down, regulators began investigating the social media platform in 2019. Rivals accused Facebook of abusing its dominant position by offering free services while profiting from the data it collects on the site.
Vestager’s Legacy
Statements against tech giants have forced companies to comply with digital regulations in the form of the Digital Services Act (DSA) and the Digital Markets Act (DMA). These aim to prohibit harmful advertising practices and limit the spread of misinformation online.
As Big Tech companies become more powerful than ever, lawmakers and enforcers are trying to rein them in. A judge recently ruled that Google was acting as a search engine monopolist, and earlier this year Apple was fined a record amount of 1.2 billion dollars for anti-competitive behaviour.
The resignation of Margaret Vestager as EU Commissioner was seen as a victory for the big tech companies that have been on the list for some time. the end of its strict anti-competitive rulingsbut she may still be able to make this final statement before she steps down.
The new antitrust officer for the EU college is likely to be Spanish climate expert Teresa Ribera, who looks set to continue Vesteger’s tough competition policy.
Via Financial Times