Brussels. The European Union (EU) announced this Thursday the application of a fine of 798 million euros (about 840 million dollars) to Meta, owner of Facebook and Instagram, for anti-competitive practices in the online advertising market.
According to the European Commission – the executive arm of the EU – Meta “links its online classified advertising service Facebook Marketplace to its personal social network Facebook.”
Meta denies having violated the law and has already announced that he will appeal. In the company’s view, the Commission’s decision “ignores the realities of the powerful European online advertising market.”
“Facebook users can choose whether or not they want to interact with Marketplace, and many don’t. The reality is that people use Facebook Marketplace because they want to, not because they have to,” the firm said in a statement.
“It is disappointing that the Commission has chosen to take action against a free and innovative service built to meet consumer demands,” he said.
For the Commission, Meta “is dominant in the personal social network market.”
By linking its online classifieds service Facebook Marketplace to its social network Facebook, “all Facebook users automatically have access and are exposed to Facebook Marketplace whether they want it or not,” he said.
Furthermore, the Commission accused Meta of “unilaterally imposing unfair commercial conditions on other online classified advertising service providers advertising on Meta’s platforms, in particular (…) Facebook and Instagram.”
In this way, Facebook Marketplace benefits from “a substantial distribution advantage that competitors cannot match.”
Abuse of dominant position
Therefore, the Commission concluded that Meta “abuses its dominant position.”
The value of the fine, the Commission noted, was defined by “the duration and severity of the violation,” and also took into account the benefits of Meta, which in 2023 recorded some 135 billion dollars.
Since the EU adopted two rigid laws to bring order to the digital market, the Commission has already had several confrontations with Meta.
These are the Digital Services Law (LSD) and the Digital Markets Law (LMD), which contemplate heavy fines for companies that do not comply with the regulations.
Following that pressure, Meta announced this week that it would offer users who don’t pay for Facebook and Instagram on the block the option to receive fewer targeted ads.
At the same time, it promised to reduce subscription fees for completely ad-free services.
In March of this year, the European Commission imposed a huge fine of around 1.8 billion euros (about $1.9 billion) for abuse of dominant position and restrictive rules in online music distribution.
In September, the Court of Justice of the EU (CJEU, the highest European court) determined Apple must reimburse Ireland 13 billion euros (about $14.3 billion) in improper state aid.
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#fines #Meta #million #euros #violating #competition #rules
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**How might the EU’s decision in the Meta fine case influence the strategies of other tech giants operating in Europe, such as Google or Amazon, regarding their own market practices?**
## World Today News Interview: Meta Faces €798 Million Fine from EU
**Introduction:**
Welcome to World Today News, where we dig deep into the headlines that shape our world. Today we’re discussing the €798 million fine levied on Meta, the parent company of Facebook and Instagram, by the European Union for alleged anti-competitive practices in the online advertising market. Joining us are [Guest 1 Name], a leading expert in digital antitrust law, and [Guest 2 Name], a technology analyst specializing in the social media landscape.
**Section 1: Understanding the Allegations**
**Moderator:** Let’s start by unpacking the EU’s allegations against Meta. [Guest 1 Name], can you explain the core issue at play here? What specific actions are being deemed anti-competitive?
**Guest 1:**
**Moderator:** [Guest 2 Name], from a technological standpoint, how does Facebook Marketplace’s integration with Facebook potentially give it an unfair advantage in the classified advertising space?
**Guest 2:**
**Section 2: Meta’s Defense**
**Moderator:** Meta has vehemently denied violating EU competition rules. What are their primary arguments against the fine? [Guest 2 Name], how do Meta’s claims about user choice factor into this debate?
**Guest 2:**
**Moderator:** [Guest 1 Name], do you find Meta’s arguments convincing? What counterpoints might you raise from a legal perspective?
**Guest 1:**
**Section 3: Broader Implications**
**Moderator:** This case is just the latest in a series of regulatory actions against Big Tech in Europe. [Guest 1 Name], what larger trends in digital antitrust law are we seeing emerge, and how might this case affect future regulations?
**Guest 1:**
**Moderator:** [Guest 2 Name], what are the potential repercussions for Meta’s business model if the EU’s decision stands? How might this impact its advertising revenue and overall strategy?
**Guest 2:**
**Section 4: Looking Ahead**
**Moderator:** This is undoubtedly a significant development in the ongoing debate over the power of tech giants. Both guests, what key takeaways should viewers keep in mind as this story unfolds? What potential outcomes can we anticipate?
**Guest 1 & Guest 2:**
**Conclusion:**
Thank you to both our guests for providing insightful perspectives on this complex issue. The outcome of the Meta fine case will likely have far-reaching consequences for the digital landscape, and World Today News will continue to provide in-depth coverage on this developing story.
