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European Union fines Meta $840m over Facebook ads

The EU has fined Meta, the parent company of Facebook, $840 million (797.72 million euros) for breaking antitrust rules by linking its classified ads service, Facebook Marketplace, with its social media platform.

The European Commission accused Meta of abusing its dominant position by giving Facebook users automatic access to Marketplace, which it says gave the service an unfair advantage over competitors.

“This is illegal under EU antitrust rules. Meta must now stop this behaviour,” said Margrethe Vestager, the EU’s competition chief.

The commission also found that Meta imposed unfair conditions on other classified ads services advertising on Facebook and Instagram. It claimed Meta used data from these ads to benefit its own Marketplace platform, which competitors could not match.

In response, Meta announced plans to appeal, arguing that the EU’s decision ignored the realities of the market.

“Facebook users can choose whether or not to engage with Marketplace, and many don’t. The reality is that people use Facebook Marketplace because they want to, not because they have to,” Meta said in a statement.

The Meta , Facebook ‘s parent added that it does not use advertisers’ data unfairly, saying, “We have built systems and controls to ensure this does not happen.”

The fine is one of the ten largest antitrust penalties ever imposed by the EU and follows several similar cases against Big Tech companies. The commission said the penalty considered the “duration and gravity” of Meta’s alleged wrongdoing, as well as the company’s overall revenue, which was around $135 billion last year.

Meta also criticized the action as harmful to innovation. “It is disappointing that the Commission has chosen to take regulatory action against a free and innovative service built to meet consumer demand,” the company said.

This fine is the latest in the EU’s broader efforts to curb abusive practices by large tech companies. It has introduced stricter digital laws, including the Digital Services Act and the Digital Markets Act, which carry heavy financial penalties for violations.

Meta has faced increasing scrutiny in Europe, with a separate case earlier this year involving its “pay or consent” system, where users had to either pay to avoid data collection or agree to data sharing. Following pressure, Meta recently announced changes, allowing EU users to receive less targeted ads or opt for ad-free services at lower subscription rates.

The case against Meta began in June 2021, with formal charges communicated in 2022. The ruling signals the European Union ’s determination to ensure fair competition in the tech industry.

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