Meta faces a $13.4 billion fine from the European Union for violating competition rules

Intelligence from Zhitong Finance revealed that, according to insiders, Meta (META.US) is facing a multi-billion-dollar fine from the European Union for violating competition rules. Several informed sources said on Thursday that regulatory authorities are expected to announce the fine soon. Antitrust authorities accuse the US company of linking its Facebook online network with Facebook Marketplace, which is deemed unacceptable. Furthermore, it is reported that Meta puts competitors at a disadvantage when they try to advertise on Facebook or Instagram.

Sources added that the decision on the fine is expected to be announced before the end of the term of the current EU Competition Commissioner Margrethe Vestager in November. The European Commission declined to comment on the matter. Meta confirmed earlier statements, stating that these accusations are unfounded. In the event of violating EU antitrust laws, companies face fines of up to 10% of their global annual revenue. For Meta, this amounts to $13.4 billion. However, actual fines imposed are usually much lower than this amount.

The EU's penalty for Meta's violation of competition rules is expected to include a substantial fine, which, based on its global revenue, could reach as high as $13.4 billion. This so-called competition harm stems from Meta's alleged unfair practices, such as the unfavorable treatment of Marketplace competitors trying to advertise on Facebook or Instagram.

An insider at Meta-Holding hinted that once the investigation and details of the EU's penalty are finalized, the company may challenge the EU's accusations regarding the interconnection of its Facebook network and Facebook Marketplace, which has had a negative impact on competitors