The EU fines Meta Platforms €798 million ($840 million) for abusing its position with Facebook Marketplace. The EU says Meta broke antitrust rules by linking its online classified service, Marketplace, to its social network, Facebook. It also imposed unfair trading conditions on other classified ad providers.
Meta (META) plans to appeal the decision but will comply with the EU’s ruling. The company promises to quickly address the concerns raised by the European Commission.
This fine follows a two-year investigation by the European Union. In 2021, the EU began investigating Meta’s practices, accusing it of unfairly bundling Facebook with Marketplace. This gave Marketplace an edge over other online classified services.
Meta’s European headquarters in Dublin is the center for its regional operations. This is not the first time Meta has faced scrutiny from EU regulators. The investigation was launched after the Commission raised concerns about Meta’s practices in December 2022.
Meta’s Defense
Meta insists that Facebook users can choose not to engage with Marketplace. Many users choose not to use the service, the company claims. Meta also argues that the European Commission failed to show evidence that Marketplace harmed competitors in the EU.
Meta’s response points out that no direct harm to other companies has been proven in the EU’s case.
The European Commission’s Findings
The European Commission argues that Meta illegally ties Facebook and Marketplace together. This limits consumer choice and harms competition. However, Meta maintains that users have the option to avoid Marketplace. According to Meta, this fact is ignored in the Commission’s case.
The Commission also expressed concern that Meta’s actions could have negatively impacted competition in the online classified ads market.
Possible Consequences
The EU has the power to fine companies up to 10% of their global revenue for antitrust violations. This fine on Meta serves as a warning to other companies in the tech industry.
The EU fine on Meta underscores the increasing scrutiny over big tech companies. As Meta prepares to challenge the decision, the case could influence future regulatory actions. The outcome will be closely watched, with significant implications for how tech companies operate in the EU.