Meta is potentially facing a significant fine over its alleged attempts to dominate the classified advertising market.
The classified ad practices of the corporation have come under fire for linking free Marketplace services with the Facebook platform, which 'undermines rivals', according to the EU regulators. It’s not clear how much the fine would be, but the figure could be up to 10% of global annual revenue, which was almost $135 billion in 2023.
In what could be EU antitrust Commissioner Margaret Vestager’s final blow to big tech before stepping down, regulators started looking into the social media platform in 2019 after rivals accused Facebook of abusing its dominant position by offering free services whilst profiting from the data it collects on the site.
Vestager’s legacy
Rulings against tech giants have forced companies to comply with digital regulations in the forms of the Digital Services Act (DSA) and Digital Markets Act (DMA). These have aimed to outlaw harmful advertising practices and mitigate the spread of misinformation online.
As Big Tech companies grow more powerful than ever, legislators and enforcers look to rein them in. A judge recently found that Google was acting as a search engine monopolist, and earlier this year, Apple was fined a record $1.2 billion for anti-competitive behaviors.
Margaret Vestager stepping down as EU commissioner was seen as a win for big tech companies who have been on the receiving end of her strict anticompetition rulings, but she may be able to see through this final ruling before she steps down.
The new antitrust enforcer for the EU college is likely to be named as Spanish climate expert Teresa Ribera, who looks set to continue Vesteger’s legacy of firm competition policy.
Via Financial Times
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