Meta is under the radar again and this time it is costing a lot. The European Union has imposed a hefty fine on the Facebook parent company. The fine translates to €797.72 million, approximately Rs 7,167.51 crore. The heavy fine is being levied for “abusive practices” related to its Facebook Marketplace online classified ads service. On Thursday, the EU announced the penalty saying that Meta unfairly leveraged Facebook Marketplace by automatically linking it with the Facebook social media platform. It further added that it gave Facebook a “substantial distribution advantage” over competing ad services.
EU’s concern is that every Facebook user has access to the Facebook Marketplace, even if they want to use it or not. Further, it said that Meta used ad data from competitors advertising on Facebook and Instagram to boost Facebook Marketplace. This is something that the EU counts as unfair and anti-competitive.
Defending itself, Meta said that it did not “use advertisers’ data for this purpose” and has “built systems and controls to ensure that”. The tech giant further read, “It is disappointing that the Commission has chosen to take regulatory action against a free and innovative service built to meet consumer demand,” as reported by Al Jazeera.
Meta expressed disappointment over the EU’s action, calling Facebook Marketplace a free and innovative tool designed to meet consumer demand. For now, Meta has agreed to comply with the EU’s order to pay the fine and to amend its practices. However, at the same time the company also plans to appeal the decision.
This is not the first time that the EU has levied such a hefty fine on a major tech company over antitrust violations in recent years. This one has become one of the top 10 largest fines levied on tech companies.