EU Slaps Meta with $840 Million Fine Over Facebook Marketplace Practices
The European Union has imposed a €798 million ($840 million) fine on Meta Platforms for what it described as antitrust violations linked to Facebook Marketplace.
According to the European Commission, Meta breached EU competition laws by tying Facebook Marketplace, its online classified ads service, to its dominant social networking platform, Facebook. The company was also accused of imposing unfair trading conditions on rival online classified ad providers.
In a statement, the Commission said, “Meta’s practices have unlawfully tied the use of Facebook Marketplace to the social network Facebook, distorting competition and harming other online classified ads service providers.”
Meta has announced plans to appeal the decision but stated it would comply with the ruling in the interim. “We will work quickly and constructively to address the concerns raised,” the company said.
The fine follows a two-year investigation that began in June 2021. In December 2022, the European Commission raised objections, alleging that Meta bundled Facebook Marketplace with its social network, giving it an unfair advantage over competitors.
Launched in 2016 and rolled out in Europe a year later, Facebook Marketplace has grown into a significant player in the online classifieds space. The EU’s findings claim that Meta’s actions constituted an illegal “tying” practice, forcing users of Facebook to also engage with Marketplace. However, Meta has rejected this, arguing that users are free to choose whether or not to interact with Marketplace.
Meta also contended that the Commission’s claims of potential harm to competitors were unsupported by evidence.
Under EU antitrust regulations, companies found guilty of anti-competitive conduct can face fines of up to 10% of their global revenue.
The ruling underscores the EU’s ongoing efforts to regulate major tech firms and ensure fair competition in digital markets. This case adds to a growing list of legal challenges Meta has faced in Europe, reflecting the bloc’s tough stance on Big Tech practices.
