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Meta(META.US) is facing a $13.4 billion fine from the EU for violating competition rules.

AInvestFriday, Jul 26, 2024 4:10 am ET
1min read

Wealth reported that Meta (META.US) is facing tens of billions of euros in fines from the EU for violating antitrust rules, according to insiders. Several sources said the fines are expected to be announced soon by regulators. The antitrust authorities have accused the US company of linking its Facebook online network with Facebook Marketplace in an unfair way, which is unacceptable. Moreover, Meta is said to disadvantage rivals when they try to advertise on Facebook or Instagram.

The sources added that the decision on the fines is expected to be announced before the end of the current term of Margrethe Vestager, the current EU antitrust commissioner. The European Commission declined to comment. Meta confirmed earlier statements that the accusations were baseless. In the case of a violation of the EU antitrust law, fines can reach up to 10% of a company's global annual revenue. For Meta, that would be $13.4bn. However, actual fines are usually much lower.

The EU's fines for Meta's violation of antitrust rules are expected to include a large fine, possibly up to $13.4bn, based on its global revenue. The alleged harm to competition stems from Meta's alleged unfair practices, such as disadvantaging rivals trying to advertise on Facebook or Instagram.

An insider at Meta-Holding suggested that the company might challenge the EU's accusations that its Facebook network is linked to Facebook Marketplace, which has a negative impact on rivals, once the investigation and the details of the EU's fines are finalised.

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