EU Hits Meta with Huge Fine for Marketplace Monopoly

The European Union has slapped Meta, the company behind Facebook, with a massive $840 million fine. This penalty comes from the European Commission, the EU's antitrust watchdog, which found that Meta used its power unfairly in the world of online classified ads. The commission believes Meta took advantage of its huge user base on Facebook to promote its own classified ads service, Marketplace. They say Meta made Marketplace visible to all Facebook users, even those who didn't want to see it. This move squashed competition from other ad platforms, making it hard for them to grow. Regulators also worry that Meta used its terms of service to get data from rival platforms that advertised on Facebook or Instagram. This data helped Meta's Marketplace stay ahead of the competition. Margrethe Vestager, the EU's competition chief, said Meta's tactics gave it an edge that no other online classified ads service could match. She warned that these practices are against EU antitrust rules and must stop. The investigation started in 2021 when the EU and the UK began looking into Meta's classified ads business. The UK wrapped up its probe last year after Meta agreed to some changes. Meta doesn't agree with the fine, saying it hasn't harmed rivals or consumers. They point out that users can choose to use Marketplace or not, and that online marketplaces like eBay and Vinted are still thriving. Meta plans to follow the EU's orders but will also appeal the decision. Apart from this, Meta had temporarily banned political ads before the 2024 election. They recently announced that these restrictions will end on November 7, allowing new political ads in the US.

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