The European Union has imposed a hefty fine of €798 million ($840 million) on Meta Platforms for what it deems as abusive practices favoring 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, and by 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, it has also stated that it will comply with the ruling and swiftly work towards implementing 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 concerns in December 2022 about Meta's practice of tying Facebook to its online classified ad services.
Facebook Marketplace was launched in 2016 and later expanded into multiple European countries. The EU's decision revolves around the argument that Meta unlawfully forces Facebook users into using Marketplace through an illegal 'tie.' Meta, on the other hand, contends that users have the choice to engage with Marketplace and many opt not to do so.
While the European Commission claimed that Facebook Marketplace could potentially impede the growth of established online marketplaces in the EU, Meta maintains that there is no evidence of harm to competitors. It is important to note that companies found guilty of EU antitrust violations risk fines of up to 10% of their global turnover.
