Allegations have been made against the firm, stating that it harms competitors by linking Facebook and Marketplace.
Once more, the European Commission is in danger of imposing a significant fine on Meta. According to the Financial Times, which cites sources familiar with the matter, the regulatory arm of the bloc is currently preparing its findings from the investigation into allegations that Meta tied its Marketplace service to Facebook in order to harm competitors.
In the event that Meta is determined to be the responsible party, the company might be held liable for ten percent of its yearly revenue around the globe, which reached almost $135 billion in the previous year. On the other hand, the fine might be somewhat lower, and Meta will almost probably file an appeal against it.
Margrethe Vestager, executive vice president in charge of competition policy, stated at the time that “Meta ties its dominant social network Facebook to its online classified ad services called Facebook Marketplace.” The Commission launched its initial investigation in 2019, and three years later, it announced its preliminary findings concerning the matter. Furthermore, we are concerned that Meta enforced unfair trading conditions, which allowed it to use data on competing online classified ad services. This is something that we are concerned about. According to our competition regulations, Meta’s tactics would be considered illegal if they were confirmed. Other investigations are being conducted by the Commission into Meta’s election practices, issues over addiction and safety for minors, and its consent or pay model.
Considering that President Ursula von der Leyen just recently made the announcement of her new team, the news comes at a time when the European Commission is going through a period of transformation. In the reorganization that will take place for her second term, Margrethe Vestager, who has served as the head of competition for the past ten years, will be succeeded by Teresa Ribera. Initial reports that Vestiger might be resigning from his position this year arose in the month of August.