The European Commission has fined Meta almost €800 million for breaching EU antitrust rules “by tying its online classified ads service Facebook Marketplace to its personal social network Facebook and by imposing unfair trading conditions on other online classified ads service providers.”
“This means that all Facebook users automatically have access and get regularly exposed to Facebook Marketplace whether they want it or not,” said the Commission.
“The Commission found that competitors of Facebook Marketplace may be foreclosed as the tie gives Facebook Marketplace a substantial distribution advantage which competitors cannot match …”
The Commission said Meta’s actions unilaterally imposed “unfair trading conditions on other online classified ads service providers who advertise on Meta’s platforms, in particular on its very popular social networks Facebook and Instagram.”
This allowed Meta “to use ads-related data generated by other advertisers for the sole benefit of Facebook Marketplace.”
The Commission has ordered Meta to bring the conduct effectively to an end, and to refrain from repeating the infringement or from adopting practices with an equivalent object or effect in the future.
In setting the level of the fine, the Commission said it “took into account the duration and gravity of the infringement, as well as the turnover of Facebook Marketplace to which the infringements relate and which therefore defines the basic amount of the fine.”
In addition, the Commission said it “considered Meta’s total turnover, to ensure sufficient deterrence for a company with resources as significant as Meta’s.”
In a statement, Meta said: “We will appeal the decision. In the meantime, we will comply, and will work quickly and constructively to launch a solution which addresses the points raised. We aim to make announcements shortly to reassure our European users that Facebook Marketplace is here to stay.”
Meta said the Commission’s 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.”
Meta added: “Furthermore, the real problem is that this case entirely distorts competition law.
“EU competition law is intended to protect the competitive process and consumers, not to preserve the established business positions of incumbent providers in the face of innovation. Ironically, in the name of competition, this decision does just that at huge cost to consumers.
“It is disappointing that the Commission has chosen to take regulatory action against a free and innovative service built to meet consumer demand, particularly when senior European political figures are calling for the EU to be more competitive, innovative and forward-thinking.”