Meta facing near $1B EU antitrust fine over Facebook marketplace practices
The European Commission has fined Meta €797.72 million (approximately $843 million) for violating EU antitrust regulations. The decision comes after a lengthy investigation into the integration of Facebook Marketplace with its flagship social network, Facebook, and allegations of unfair trading practices.
The Infringement
The Commission found that Meta abused its dominant position in two key ways:
Tying Facebook Marketplace to Facebook: The investigation revealed that all Facebook users were automatically given access to Facebook Marketplace, exposing them to its services whether they opted in or not. This integration gave Marketplace a substantial distribution advantage, making it difficult for competitors to compete on equal footing.
Unfair Trading Conditions: Meta was accused of using data generated by other online classified ad service providers who advertised on its platforms, Facebook and Instagram, to benefit its own Marketplace. This practice was deemed "unjustified and disproportionate," disadvantaging rivals in the online classified ads sector.
“Meta’s practices have harmed competition and innovation in the online classified ads market,” said Margrethe Vestager, Executive Vice-President of the European Commission. “Today’s decision sends a clear message that such anti-competitive behavior will not be tolerated.”
Financial penalty and future restrictions
The €797.72 million fine was calculated based on the gravity and duration of the infringement, as well as Meta's total turnover. This aims to serve as a sufficient deterrent for a company of Meta’s scale. The funds will be added to the EU budget, indirectly reducing member states’ contributions and benefiting taxpayers.
The Commission also ordered Meta to cease the infringing practices and refrain from adopting similar tactics in the future.
Meta's response
Meta has announced plans to appeal the decision, arguing that it misrepresents both the nature of Facebook Marketplace and the dynamics of competition in the online classified ads sector. The company claims that:
Facebook Marketplace was developed to meet organic consumer demand, not as a tool to stifle competition.
Users can choose whether to engage with Marketplace, and many opt not to.
Major competitors, such as eBay, Leboncoin, and Vinted, continue to thrive and dominate local markets.
Meta also criticized the Commission’s decision for relying on hypothetical harm rather than concrete evidence, suggesting it unfairly penalizes innovation and distorts the principles of competition law.
What's Next?
The legal battle is far from over. Meta's appeal could take years to resolve. In the meantime, the Commission's ruling puts pressure on Meta to adjust its practices regarding Facebook Marketplace in the European market.
