Meta ‘faces fine’ from EU over classified ads

Meta could face a substantial fine from EU regulators over its attempts to monopolise the classified advertising market.

According to a report from the FT, the parent company of Facebook and Instagram could be fined by the European Competition Commission under antitrust rules for trying to undermine its rivals. EU regulators will claim Meta links its free Marketplace services with the social network to undermine competitors, said sources familiar with the matter.

The decision could be announced as early as next month and would be one of the last investigations overseen by Margrethe Vestager, the outgoing European competition commissioner. This antitrust probe was launched in 2019 after accusations from rivals that Facebook was abusing its dominant position by offering free services while profiting from data collected on the platform. In December 2022, the European Commission found that Meta was distorting competition in the online classified ads market and using data from businesses to sell ads to users.

National Technology News has reached out to Meta and the European Commission for comment. The commission declined to comment on the case. Meta also declined to comment but referred to an earlier statement: “The claims made by the European Commission are without foundation. We continue to work with regulatory authorities to demonstrate that our product innovation is pro-consumer and pro-competitive.”

Meta can appeal against the case. If found guilty, it could face penalties of up to 10 per cent of its global annual revenue, which in 2023 was nearly $135 billion. However, regulators typically issue much lower sanctions. Meta argues that Facebook Marketplace operates in a highly competitive landscape and does not use data from rivals to compete against them.

Last month, the UK’s Competition and Markets Authority (CMA) accepted Meta’s revised proposals regarding the use of advertising data, aiming to ensure a fair competitive environment across its platforms. The changes, following extensive consultation with stakeholders, mark a significant shift in how Meta will manage advertisers’ data, particularly concerning its Facebook Marketplace.

During her tenure, Vestager has targeted major tech companies, including Apple, Google, and Microsoft. Recently, the European Court of Justice ruled that Google had abused its market power, and the EU’s top court ordered Apple to pay €13 billion in back taxes, seen as victories for Vestager.