The European Commission (EC) has imposed on Thursday a fine of 797.72 million euros on Meta for failing to comply with the European Union’s antitrust rules.

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The EC penalizes the company for linking its online classified ads service Facebook Marketplace to its social network Facebook and imposing unfair commercial conditions on other online ad service providers.

Brussels has specified in a statement that on Facebook Marketplace users can sell and buy products and added that its investigation has concluded that Meta is dominant in the market for personal social networks, as well as in the national markets for online display advertising on social networks.

The EU executive underlines that Meta abused its dominant position by linking Facebook Marketplace to Facebook, so that all users of the social network automatically have access and are regularly exposed to its online classified ads service whether they want to or not.

🔴The 🇪🇺 Commission fines Meta €797.72 million over abusive practices benefitting Facebook Marketplace 👇

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— EU Competition (@EU_Competition) November 14, 2024

The European Commission has concluded that competitors of Facebook Marketplace may be foreclosed, as the link gives Facebook Marketplace “a substantial distribution advantage that competitors cannot match”.

According to Brussels, Meta also abused its dominant position by unilaterally imposing unfair commercial conditions on other providers of online classified ad services that advertise on Meta’s platforms, in particular Facebook and Instagram.

“This allows Meta to use data related to ads generated by other advertisers for the exclusive benefit of Facebook Marketplace,” the EC details.

All in all, the Commission says it has ordered Meta to put an end to its conduct and to refrain from repeating the infringement or adopting practices “with an equivalent object or effect in the future.”

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In imposing the financial amount of the fine, the EU executive took into account “the duration and gravity of the infringement”, as well as the turnover of Facebook Marketplace to which the violations relate and Meta’s total turnover.

-Thailand News (TN)