European Union regulators have imposed a hefty fine of almost 800 million euros on Meta, the parent company of Facebook, for what they have deemed as 'abusive practices' related to its Marketplace online classified ads business. The European Commission, the executive branch of the 27-nation bloc and a key antitrust enforcer, issued the penalty following a thorough investigation that revealed Meta's abuse of its dominant position and engagement in anti-competitive behavior.
The commission's probe found that Meta had distorted competition by linking its online classified ad business to its social network, thereby automatically exposing Facebook users to Marketplace without their explicit consent, thereby excluding competitors from the market. Additionally, concerns were raised about Meta's unfair trading conditions, which allowed the company to utilize ad-related data from competing classified ad platforms advertising on Facebook or Instagram to benefit Marketplace.
Margrethe Vestager, the commission's executive vice-president overseeing competition policy, emphasized that Meta's practices provided the company with unfair advantages that other online classified ad service providers could not match, violating EU antitrust regulations. As a result, Meta has been instructed to cease such behavior immediately.
In response, Meta argued that the commission's decision failed to demonstrate any competitive harm to rivals or consumers and disregarded the vibrant European market for online classified listing services. The company highlighted that Facebook users have the option to engage with Marketplace voluntarily, and pointed out the continued growth of various online marketplaces across Europe.
While Meta has agreed to comply with the Commission's directive to halt the offending conduct and prevent its recurrence, the company has also announced its intention to appeal the decision. The origins of this case trace back to 2021 when EU regulators, along with their British counterparts, initiated investigations into Meta's classified business. The British regulator concluded its inquiry last year after Meta offered concessions.
