Meta braces for first EU antitrust fine

Meta Platforms is close to having to pay its first antitrust fine in the European Union, according to those familiar with the matter, after regulators have decided the company's alleged anti-competitive practices.

The tech giant is under pressure over its classified ads service, Facebook Marketplace, which the EU Commission believes has been unfairly bundled with the core Facebook social network.

Furthermore, it's alleged by the Commission that Meta has imposed unfavourable terms on rival classified ad services advertising on its platforms.

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It could be as high as $13.4 billion, although past EU fines indicate that the actual fine will likely be much lower.

The Commission is to adopt its final decision in the next few months before antitrust chief Margrethe Vestager leaves in November.

Meta has always denied any wrongdoing, arguing its product innovations benefit consumers and rivals alike. Indeed, it even attempted to settle an investigation by offering limits on how it uses competitor advertising data to boost Facebook Marketplace, but this was rejected by the EU.

It is the latest of a line in regulatory challenges for Meta, already facing a separate charge at the Commission over its failure to comply with new tech rules about its ad model.

With the digital world evolving, there has been increased pressure on tech giants to observe antitrust regulations.

If the court rules against Meta, this could dramatically change how it works in Europe and might set a legally binding precedent for future antitrust actions against other tech companies.

(With inputs from Reuters)