Skip to main content

Already a subscriber? Make sure to log into your account before viewing this content. You can access your account by hitting the “login” button on the top right corner. Still unable to see the content after signing in? Make sure your card on file is up-to-date.

The European Commission has slapped Meta with a $840 million fine for breaching EU antitrust rules.

Let’s bring you up to speed: Back in June of 2021, the European Commission launched a formal investigation into Meta’s business practices, specifically scrutinizing its integration of Facebook Marketplace with its social media platform, Facebook. The inquiry focused on whether Meta’s bundling of these services constituted an illegal “tying” arrangement, which could unfairly distort competition by leveraging Facebook’s user base to favor Marketplace over rival platforms. The investigation also examined whether Meta imposed unfair trading conditions on other online classified ad service providers. By December 2022, the Commission had issued a Statement of Objections outlining concerns that these practices could harm competition and limit consumer choice.

Marketplace Newsroom

What’s going on now: On Friday, the European Commission ruled that Meta had violated EU antitrust regulations because of its “tying” arrangement. As a result, the Commission imposed a €798 million ($840 million). The ruling also ordered Meta to immediately cease the anti-competitive practices and refrain from similar conduct in the future.

In a statement, Margrethe Vestager, one of the heads of the EU’s Commission, said, “Today we fine Meta €797.72 million for abusing its dominant positions in the markets for personal social network services and for online display advertising on social media platforms. Meta tied its online classified ads service Facebook Marketplace to its personal social network Facebook and imposed unfair trading conditions on other online classified ads service providers. It did so to benefit its own service Facebook Marketplace, thereby giving it advantages that other online classified ads service providers could not match. This is illegal under EU antitrust rules. Meta must now stop this behavior.”

Meta’s not having it: In a statement, a spokesman for Meta said, “This decision ignores the realities of the thriving European market for online classified listing services and shields large incumbent companies from a new entrant, Facebook Marketplace, that meets consumer demand in innovative and convenient new ways. We will appeal this decision to ensure that consumers are well served in the EU.”

JOIN THE MOVEMENT

Keep up to date with our latest videos, news and content