Meta was fined more than $840 million on Wednesday after a three-year legal process for violating European Union antitrust rules related to market dominance.
According to , the multinational company was penalized for tying the online classified advertising service Facebook Marketplace to the personal social network Facebook. release.
This feature allows Meta to use data generated by other advertisers on Facebook and Instagram to attract customers on Facebook Marketplace.
“This decision ignores the reality of the thriving European market for online classified listing services, and is a shift from new entrants such as Facebook Marketplace to large, established companies meeting consumer demand in innovative, convenient new ways. ,” Mehta wrote. Reactions to blog posts. “We will appeal this decision to ensure that consumers are well served in the EU.”
The company claims there is no evidence it has harmed other advertisers, citing evidence of “formidable competitors” such as eBay, France's Leboncoin, Netherlands' Marktplaats, Italy's Subito, Sweden's Blocket and Norway's Finn.no. I mentioned growth.
Despite Mehta's claims, the European Commission ordered Mehta to stop its conduct and refrain from repeating similar advertising practices in the future after launching a formal investigation. 2021 A statement of objection will then be announced in 2022.
“In setting the level of the fine, the Commission considered the duration and severity of the violation, as well as the Facebook Marketplace sales volume to which the violation involved, which determined the base amount of the fine,” the commission wrote. are. .
“Furthermore, the committee took into account Meta's total turnover to ensure sufficient deterrence for a company with resources as significant as Meta's,” it added.
Updated at 8:26 PM ET.
