2024-11-14 14:17:00
The EU Commission imposed a fine of 797.72 million euros on Facebook parent company Meta. “Meta has linked its online classifieds service Facebook Marketplace with its personal social network Facebook and imposed unfair trading conditions on other providers of online classifieds services,” criticized the responsible commissioner Margrethe Vestager in a statement.
The US company wanted to give its own Facebook Marketplace service advantages that other providers of online classified advertising services could not compensate for. The Brussels authority had already initiated formal proceedings in June 2021 due to possible anti-competitive behavior by Facebook.
The EU Commission criticizes the fact that by linking the online classifieds service Facebook Marketplace with the social network Facebook, all Facebook users automatically have access to the Marketplace and this is also displayed regularly – whether they want it or not. In this way, Facebook Marketplace competitors would be excluded from the market.
According to the Commission, the amount of the fine took into account how long and how seriously Meta had violated EU law. In addition, sales from Facebook Marketplace were included in the calculation. “The Commission also took into account Meta’s total turnover in order to provide a sufficient deterrent effect on a company with such large resources as Meta.”
Meta announced that it would appeal the decision. The US group added that the EU had provided no evidence of harm to competitors or consumers.
EU competition watchdogs have been scrutinizing American technology platforms for years. In March, the EU Commission had already imposed a competition fine of 1.8 billion euros on the tech giant Apple. The US company was accused of abusing its dominant market position to distribute music streaming apps to iPhone and iPad users via its app store. Google has also been fined billions of dollars.
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What specific measures does the European Commission plan to implement to prevent anti-competitive practices among tech giants like Meta in the future?
**Interview with Margrethe Vestager, EU Commissioner for Competition**
**Interviewer:** Thank you for joining us, Commissioner Vestager. The recent fine of 797.72 million euros imposed on Meta for anti-competitive practices has stirred significant discussion. Can you elaborate on the main concerns the European Commission had regarding Meta’s integration of Facebook Marketplace with its social network?
**Vestager:** Certainly. Our primary concern is that Meta’s strategy effectively ties its online classifieds service, Facebook Marketplace, to its expansive social network, which essentially forces all Facebook users to access the Marketplace without their consent. This creates an unfair competitive environment, as other providers of online classified services cannot compete on a level playing field.
**Interviewer:** Meta has announced its intention to appeal this decision. They claim that the EU has not demonstrated any harm to competitors or consumers. How do you respond to this assertion?
**Vestager:** Our investigation was thorough, and our findings indicated a clear violation of EU law. While Meta may argue that there isn’t visible harm, the structure of their Marketplace limits opportunities for competitors and stifles innovation. Our focus is on ensuring fair competition that benefits consumers in the long run.
**Interviewer:** Looking at the broader context, we’ve seen other tech giants like Apple and Google also face hefty fines from the EU. How do you view the overall relationship between the EU and major American tech companies regarding competition?
**Vestager:** It’s imperative that large companies, regardless of their origin, adhere to the same competition rules. The EU’s consistent scrutiny is about maintaining a balanced market where consumers have choices, and innovation can thrive. We will continue to hold companies accountable when they seek to leverage their size to eliminate competition.
**Interviewer:** let’s engage our readers on this topic. Do you think the fines imposed on tech giants like Meta are necessary for protecting consumer interests, or do they risk stifling innovation and growth in the tech industry? We’d love to hear your thoughts.