Meta Platforms, Inc. (META) is on the verge of facing a substantial fine from the European Union, accused of trying to dominate the classified advertising market. The news comes as Brussels intensifies its scrutiny of anti-competitive practices among tech giants. Financial Times reports that Margrethe Vestager, the EU’s antitrust chief, is likely to oversee the investigation. While Meta has refrained from commenting further to Financial Times, the company reiterates its previous stance that the European Commission’s allegations are unfounded. Meta emphasizes its commitment to collaborating with regulatory authorities to prove that its product innovations are both consumer-friendly and competitive.
According to reports, EU regulators are expected to argue that Facebook’s parent company is leveraging its free Marketplace services in conjunction with the social network to disadvantage its rivals. The EU’s decision could be announced as soon as next month. Back in July, Reuters reported that the tech giant was on the brink of receiving its first EU antitrust fine for connecting its classified advertisements service, Marketplace, with its Facebook social network. In the same month, the European Commission reportedly planned to levy a fine on Meta for failing to comply with new tech regulations due to its recently launched pay-or-consent advertising model introduced in November.
Last year, Meta attempted to settle the EU investigation by restricting the use of competitors’ advertising data for Facebook Marketplace. However, the EU enforcer rejected this offer. Interestingly, the U.K. competition regulator accepted a similar proposal.
Investors can gain access to Meta stock through Direxion Daily META Bull 2X Shares (METU) and The Communication Services Select Sector SPDR Fund (XLC). As of Wednesday’s premarket, META shares are up 0.42% at $538.55.
The EU’s crackdown on Meta’s alleged monopolistic practices is part of a broader trend of regulatory scrutiny aimed at controlling the influence of tech giants. It remains to be seen how this investigation will unfold and what impact it will have on Meta’s future operations.
