The European Union has imposed a hefty fine of €798 million ($840 million) on Meta Platforms for what it deems as abusive practices that favored Facebook Marketplace. The EU's executive arm, the European Commission, found Meta guilty of breaching antitrust rules by linking its online classified ads service, Facebook Marketplace, to its social network, Facebook. Additionally, Meta was accused of imposing unfair trading conditions on other online classified ads service providers.
Meta, the parent company of Facebook, has expressed its intention to appeal the decision. However, in the interim, it has committed to complying with the ruling and has pledged to swiftly develop a solution that addresses the concerns raised by the EU.
The European Commission's action follows a two-year investigation into allegations that Meta provided an unfair advantage to Facebook Marketplace by bundling it with its social network. The Commission initiated formal proceedings in June 2021 and raised anticompetitive conduct concerns in December 2022, specifically regarding the integration of Facebook with Meta's online classified ad services.
Facebook Marketplace was introduced in 2016 and later expanded into multiple European countries. The EU's decision revolves around the argument that Meta unlawfully forces Facebook users into engaging with Marketplace through an illegal 'tie.' Meta, however, contends that users have the autonomy to choose whether or not to interact with Marketplace, and many opt not to do so.
While the European Commission asserted that Facebook Marketplace could impede the growth of established online marketplaces in the EU, Meta refuted these claims, stating that no evidence of harm to competitors was found. It is important to note that companies found guilty of EU antitrust violations risk fines of up to 10% of their global turnover.
