It has fined Meta €798 million ($664 million) for breaching EU competition rules by prioritizing its service, Facebook Marketplace, over other services. The Commission contended that placing Marketplace directly within the Facebook platform created an unfair competitive advantage against other rival classified ads services and, thus, constituted “unfair trading conditions.”
The decision, which follows from an investigation in 2021 after the European Commission received complaints from rivals of Meta, claims that Marketplace being integrated into Facebook has not only eliminated competition but also reduced alternative online classified ad providers. European Commission Vice-President Margrethe Vestager said Meta’s practices had “part of the aim” of helping its own service while holding back competitors. Facebook hindered other online classified ads services to benefit its own Marketplace, giving it advantages that others couldn’t match,” she said, adding that Meta must be ordered to cease such anti-competitive conduct.
The European Commission just fined it and ordered Meta to cease the practice and desist from re-engaging in infringement. In response, Meta denied the findings of the Commission and announced that it would appeal, based on the fact that the Commission did not have enough evidence of harm to either competitors or consumers. The company further stated that the ruling would only protect established players in the marketplace and limit competition.
This is a huge fine, as it is among the biggest antitrust fines Meta has ever faced in the EU. It had previously faced a €110 million fine back in 2017 for providing incorrect information during its acquisition of WhatsApp and faced another €1 billion penalty in 2019 for mishandling user data. Despite these penalties, Meta has remained steadfast in denial of antitrust violations, terming this ruling a misjudging of reality in the market.
The move reflects the increasingly determined drive by the EU to supervise big tech companies more closely, especially in the wake of similar investigations that have targeted other tech giants such as Google. The ruling serves as a reminder that regulators are becoming increasingly aggressive in holding companies accountable for anti-competitive practices that stifle innovation and consumer choice in the digital marketplace.
