The European Union is potentially going to impose a large competition fine on Meta for its shadowy market dominance of online advertising. Meta’s Marketplace services are the stumbling block. A lack of transparency is alleged to give competitors fewer opportunities to compete in the marketplace, the European Commission (EC) said.
The composition of the new EC may already be known, but the old Commission is continuing its work as usual. Among other things, this means that the EC will continue to closely monitor Big Tech companies and, where necessary, intervene. Meta is now suffering the consequences of this and is in danger of facing a mega fine from the EC. This is because of the alleged distortion of competition by its own Marketplace services.
According to EC regulators, the Meta is allegedly in a dominant position in this area. This is because the services are linked to its various proprietary platforms, such as Instagram and Facebook. As a result, Meta would make it very difficult for competitors to compete in this area.
Investigation since 2019
The possible mega fine could possibly be imposed as early as next month, writes the Financial Times based on sources. The fine is the result of a competition investigation launched in 2019 into these practices.
In 2022, the EC concluded in an initial investigation result that Meta was indeed distorting mutual competition in online advertising. In doing so, it would use free data from companies to sell ads.
The fine Meta could face as a result of these practices, if proven, is potentially 10 percent of its annual revenue. In 2023, Meta’s annual revenue was nearly $123 billion. Usually the fines come out lower, but the theoretical maximum does not lie.
Meta denies
Meta denies that competitors will have less of a chance in the online advertising market. In an earlier statement, Meta says the EC’s claims have no basis in fact. In addition, Meta would constantly work with regulators to demonstrate that its own technology is consumer-friendly and also promotes competition.
The new megaclaim against Meta may be the latest feat of current European Commissioner and Big Tech Margarethe Vestager’s terror of competition cases. That position in the new European Commission will go to Spain’s Teresa Ribera in early November.
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