EU fines Meta €797 million over Facebook Marketplace practices

The European Commission has imposed a significant fine of €797.72 million on Meta Platforms, the parent company of Facebook, for violating EU antitrust regulations. The Commission’s decision highlights Meta’s practice of tying its online classified ads service, Facebook Marketplace, to its dominant social networking platform, Facebook. This move was deemed to impose unfair trading conditions on other online classified ads service providers, giving Facebook Marketplace an undue advantage.

Meta has announced its intention to appeal the decision, asserting that users have the option to engage with Marketplace and that many choose not to. Despite its plans to contest the ruling, Meta has committed to complying with the decision in the interim. The company aims to work swiftly and constructively to address the concerns raised by the European Commission.

The investigation into Meta’s practices began in June 2021, with the European Union expressing concerns over potential anticompetitive conduct. By December 2022, the Commission had raised formal concerns regarding the bundling of Facebook and Marketplace, arguing that it constituted an illegal “tie.” Meta, however, contends that the Commission’s argument lacks evidence of harm to competitors, as it could not demonstrate any adverse effects on the growth of large incumbent online marketplaces in the EU.

Facebook Marketplace, launched in 2016 and expanded into several European countries the following year, has been under scrutiny for its integration with Facebook. The European Commission’s decision underscores the importance of maintaining fair competition practices within the digital marketplace, ensuring that dominant platforms do not leverage their position to stifle competition and innovation.

Source: EU fines Meta €797 million over abusive practices benefiting Facebook Marketplace