Companies are facing increasing pressure from regulatory authorities that are looking into any violations committed and possibly seeking to levy heavy fines as a result. Tech giants have been getting more vigilant and revamping their processes to ensure they do not have to face further scrutiny and do not end up in hot waters. Google's legal battle is still ongoing as it faces multiple investigations and seems trapped in a whirlwind. Similarly, Meta is dealing with an antitrust lawsuit from the U.S. as well as the European Union. Amidst the ongoing tension, the social media platform seems to be giving in by taking a major step for its Facebook Marketplace.
Meta is to allow rival classified ad providers to post listings on Facebook Marketplace on account of the regulatory pressure
Meta has been dealing with legal complications where the EU has levied a fine on the tech giant of about €797 million, roughly translated to around $828 million as per a Reuters report, for favoring its own services and, in turn, pushing against competitors and for violating antitrust laws. As a result, the company has opened up the Marketplace to external parties and would now allow its rival ad providers to list on Facebook's Marketplace.
Meta's Facebook Marketplace Partner Program seems to be a direct response to the EU ruling that the company conducts unfair trading practices that disadvantage its rivals. The company attempts to show compliance with regulatory authorities while still keeping in mind how the ads are integrated with the Marketplace. Mark Zuckerberg earlier suggested that the EU regulations target U.S. tech firms and seem to protect European businesses at the cost of American companies by disproportionately targeting the latter.
This seems to highlight a broader tension among tech giants, as other companies such as Google, Apple, and Amazon have also been the target of EU regulations. Meta's program is a response to comply with the ruling. Last month, Meta tested its program in Germany, the U.S., and France in collaboration with eBay. While the company is making efforts to fulfill the requirements of the EU's antitrust ruling, the EU is still going to see if Meta is in complete compliance with the November 2023 decision.
Meta taking such initiatives is vital given how the regulatory authorities are getting more aggressive when it comes to violations and imposing heavy fines. Companies should be more vigilant regarding compliance to antitrust laws in order to avoid legal complications.
