The European Commission has imposed a hefty €797.12 million fine on Meta for abusing its dominant position in the social networking market. The EC alleges that Meta tied Facebook Marketplace to Facebook and imposed unfair conditions on other online classified ad providers.
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The Commission argues that this practice gave Meta an unfair advantage, as all Facebook users are exposed to Marketplace, regardless of their interest. Additionally, third-party classified ad services were subject to unfair trading conditions, allowing Meta to leverage their data for the benefit of Facebook Marketplace.
Meta has vowed to appeal the decision, claiming that it is addressing consumer demand for innovative and convenient services. However, the company is also facing scrutiny from the European Commission for potential violations of the Digital Markets Act, specifically regarding its ad-free subscription model.
To mitigate regulatory concerns, Meta has recently lowered the monthly subscription fee and introduced a less data-intensive advertising option. It remains to be seen how these measures will impact the ongoing investigations and the company’s future operations in the EU.
