The European Union imposed a nearly €800 million fine on Meta for violating antitrust rules, citing the company’s practices with Facebook Marketplace.
The European Commission found that Meta breached competition laws by automatically granting Facebook users access to Marketplace, its classified ads service, and by imposing unfair trading conditions on competing online classified ad providers.
“This is illegal under EU antitrust rules.
Meta must now stop this behavior,” said Margrethe Vestager, the EU’s competition chief, in a statement.
Meta has announced plans to appeal the decision, arguing that it misrepresents the nature of the European online classified ads market.
“Facebook users can choose whether or not to engage with Marketplace, and many don’t.
The reality is that people use Facebook Marketplace because they want to, not because they have to,” the company stated.
The Commission detailed its findings, noting that tying Facebook Marketplace to the main Facebook platform provided an unfair competitive advantage.
“All Facebook users automatically have access and are regularly exposed to Facebook Marketplace, whether they want it or not,” the statement said.
The regulator also accused Meta of imposing unfair terms on competitors advertising on Facebook and Instagram.
According to the Commission, this enabled Meta to leverage advertising data generated by rivals for the exclusive benefit of Facebook Marketplace.
Meta denied these allegations, asserting it does not use advertisers’ data in this manner and has established systems to prevent such practices.
“It is disappointing that the Commission has chosen to take regulatory action against a free and innovative service built to meet consumer demand,” the company said.
This penalty is one of the largest antitrust fines ever levied by the EU and follows a series of actions targeting Big Tech firms.
The fine reflects the “duration and gravity of the infringement,” as well as Meta’s substantial revenue, which totaled approximately $135 billion last year.
The EU has strengthened its regulatory framework in recent years with the “Digital Services Act” and the “Digital Markets Act”, both of which impose hefty financial penalties for non-compliance.
The fine adds to Meta’s mounting regulatory challenges in Europe.
In July, the EU accused the company of violating digital rules with its “pay or consent” system, which required users to either pay to avoid data collection or agree to share data to continue using the platform for free.
Under pressure from regulators, Meta recently introduced an option for users in the EU to receive less targeted ads for free or pay for ad-free experiences at reduced subscription rates.
The investigation into Meta’s practices began in June 2021, with the company submitting a formal response in mid-2023.
This latest ruling underscores the EU’s commitment to reining in anti-competitive behavior among tech giants.
AFP
