The European Commission has imposed a €797.7 million fine on Meta Platforms for breaching EU antitrust laws by tying its online classified ads service, Facebook Marketplace, to its dominant social network, Facebook.
The Commission stated that Meta’s actions violated EU antitrust rules by unfairly benefiting Facebook Marketplace, which is bundled with Facebook, thereby imposing unjust trading conditions on other online classified ad providers. Meta has expressed its intention to appeal the ruling but confirmed that it will comply with the decision and work towards a solution to address the concerns raised by the EU.
The fine comes after a two-year investigation into Meta’s practices, which began when the Commission accused the company of giving Facebook Marketplace an unfair advantage by requiring users to access the service through Facebook. The European Commission first opened formal proceedings in June 2021, with concerns escalating in December 2022 when it raised doubts about Meta’s bundling of Facebook and Marketplace. Facebook Marketplace, which was launched in 2016, was expanded to several European countries in 2017.
According to the Commission, Meta’s actions forced users of Facebook to use Marketplace as part of their social network experience, creating an illegal “tie” between the two services. However, Meta disputes this claim, asserting that Facebook users can choose whether or not to engage with Marketplace and that many users do not interact with the service. Meta also argued that there was no evidence proving harm to competitors or consumers, as the Commission suggested that Marketplace could hinder the growth of large online marketplaces in the EU.
The fine, which amounts to a significant financial penalty, follows the European Union’s strict antitrust regulations, under which companies can be fined up to 10% of their global turnover for violations. Despite this, Meta maintains that the Commission’s arguments are not supported by evidence of competitive harm.
Meta’s compliance with the ruling marks a significant step in the ongoing regulatory scrutiny faced by tech giants in Europe. As part of its commitment to addressing the issue, Meta has pledged to work with the Commission to implement a solution, although it continues to challenge the basis of the fine and the findings of the investigation.
