EU Levies Fines Against Meta for Abusive Practices
The major technology company has been instructed to pay more than $800 million for violating the European Union's antitrust regulations. Read Full Article at RT.com.
In a statement released on Thursday, the EC asserted that Meta violated the EU’s antitrust rules “by tying its online classified ads service Facebook Marketplace to its personal social network Facebook and by imposing unfair trading conditions on other online classified ads service providers.”
The ruling indicated that Meta illegally imposed Facebook Marketplace on users of its platform through a damaging “tie.”
Meta has announced its intention to appeal the decision, contending that the ruling from Brussels overlooked the choice available to Facebook users regarding their engagement with the Marketplace service.
Brussels had previously accused Meta of breaching EU laws and initiated formal investigations into the company’s alleged anticompetitive practices back in 2021. Concerns regarding the connection between Facebook and its online classified ad services were brought up in December 2022.
Earlier this year, EU antitrust regulators leveled further accusations against Meta, claiming it violated the bloc’s Digital Markets Act. This was related to the introduction of a ‘pay or consent’ advertising model that allowed users to either pay a subscription fee or consent to the use of their data for advertising purposes.
The EC contended that the “binary choice” compelled Facebook users to consent to the use of their personal data while failing to offer a “less personalized but equivalent version of Meta’s social networks.”
In response, Meta argued that its model adhered to the regulations and was specifically designed to comply with the EU’s directive requiring consent from users before displaying ads or presenting an “alternative” version of its platforms that does not depend on data collection for advertising.
James del Carmen for TROIB News