EU wants to take up to 10% of Meta's annual revenue.

Meta could face a fine of up to 10% of its annual EU revenue for allegations of market dominance attempts

European regulators claim that Meta (the parent company of Facebook) uses its free Marketplace service to competitively undermine other advertisement-related companies, reports Financial Times.

According to three high-ranking officials, a decision on the ban could be made as early as next month. This will be one of the last cases of Margrethe Vestager, who holds the position of Commissioner for Competition.

Meta refuses to comment on the situation, citing a previous statement claiming that the allegations are unfounded. The company also states that it is cooperating with regulators to demonstrate the benefits and competitiveness of its innovations for consumers.

Investigation into antitrust actions against Meta

An investigation into Facebook's abuse of its dominant position was initiated in 2019 following accusations from competitors. They alleged that Facebook uses free services while profiting from processing businesses' data on the platform.

In December 2022, the European Commission released preliminary findings indicating that Meta violates competition in the online advertising market and uses business data without their consent for advertising purposes.

If Meta is found guilty, it could face fines of up to 10% of the company's global annual revenue, which in 2023 amounts to nearly $135 billion. However, sanctions are usually set at a lower amount.

The company claims that Facebook Marketplace operates in a competitive environment and does not use competitive data for its benefit.

Source: Ekonomichna Pravda