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Meta pushes back against €797 million EU antitrust fine

In November, the European Commission imposed a €797.72 million (£698.76 million) fine on Meta for abusing its dominant position by linking Facebook Marketplace to Facebook, thus distorting competition.

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Meta has appealed against the European Commission’s decision that it breached EU antitrust rules by incorporating Facebook Marketplace into its app, giving it an unfair advantage over competitors in the online classifieds market.

In November, the European Commission imposed a €797.72 million (£698.76 million) fine on Meta for abusing its dominant position by linking Facebook Marketplace to Facebook, thus distorting competition. The fine followed an investigation that began in 2022, which alleged that Facebook had used the scale of its social network to benefit Marketplace and created an unfair competitive edge over other online classified services.

The Commission argued that Facebook users were given access to Marketplace, regardless of whether they wanted it, and that Meta had imposed unfair trading conditions on competing classified ad services advertising on Facebook and Instagram.

In response, the company confirmed it had filed an appeal with the EU’s General Court in Luxembourg. A Meta spokesperson said the company was pushing back against what it sees as regulatory overreach by the European Union, marking a continuation of its ongoing opposition to EU regulations.

Meta executives have frequently criticised the EU’s regulatory environment, particularly its restrictions on innovation, including the EU's regulations on AI, which have hindered Meta’s ability to roll out its AI-powered chatbot and image creation tools to European users.

In a recent interview on the Joe Rogan podcast, Meta CEO Mark Zuckerberg expressed his frustration with the EU’s treatment of US tech companies. He suggested that US government action could help protect American businesses from what he perceives as unfair fines and regulations imposed by European authorities.

Zuckerberg argued that the EU's regulatory actions, which have resulted in more than $30 billion in fines against US tech companies in the past two decades, are akin to a tariff against American firms. He believes the US government should take a more active role in defending its technology companies abroad.

“I don’t want to come across as if we don’t have things that we need to do better,” Zuckerberg said. “But I do think that the American technology industry is a bright spot in the American economy, and I think it should be part of the US’s strategy going forward to defend that.”

Zuckerberg’s comments highlight his belief that the US government, particularly under former President Donald Trump, could play a role in supporting American companies in foreign markets and counteracting what he views as excessive EU regulations.

As Meta challenges the fine, it remains to be seen whether the company’s pushback will gain traction or if it will face further regulatory hurdles in the EU. The outcome could set a significant precedent for US tech companies facing similar scrutiny from European regulators.

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