I=5
A hefty EU fine on Meta for linking its marketplace with social media is expected as early as next month, but the case could take years to be completed
- The EU Commission is likely to impose a hefty fine on Meta Platforms for dominating the ad market by linking its Marketplace with its social media network, people familiar with the matter told Financial Times.
- Two months ago, Reuters published a similar report citing people familiar with the matter.
- The decision is expected as early as next month before the commission’s competition boss, Margrethe Vestager leaves office.
- If found guilty, Meta could face a penalty of up to 10% of its global turnover which was $135 billion in 2023 though the regulator usually issues a much lesser fine.
- Meta could also appeal against the case.
Assessment
Some of the notable antitrust fines imposed by the commission include a 2016 €1.5 billion imposed on Google which was overturned today by a EU court, a 2017 €2.42 billion fine on Google which was confirmed last week by a EU court and a €4.34 billion imposed on Google in 2018 (which is under appeal) . As such, I don’t expect a fine exceeding 2 billion euros given the importance of Marketplace to Meta Platform’s revenue. Also, given that Meta will likely appeal against the fine, the case could take years to be completed.