The European Union (EU) fined the company Meta, the owner of Facebook, 800 million euros yesterday over what it described as “abusive practices” involving the online classified ads business on the Marketplace platform.
The European Commission issued the fine after a lengthy investigation concluded that the company had abused its dominant position and engaged in anti-competitive behavior.
The Commission accused Meta of stifling competition by tying its online classifieds business to its social network, automatically exposing Facebook users to Marketplace “whether they want it or not” and effectively shutting out any potential competitors.
It was also stated that Meta imposes unfair trading conditions through terms of service that allow the company to use ad data generated from competing classified platforms that advertise on Facebook or Instagram to benefit Marketplace.
Meta’s practices gave it “advantages that other online classified service providers cannot match,” said Margrethe Vestager, Executive Vice President of the Commission responsible for competition policy, in a public statement. “This is illegal under EU antitrust rules. Meta now has to stop this behavior.”
In a statement, Meta argued that the decision fails to prove any “harm to competition” allegedly inflicted on rivals or consumers and that it “overlooks the reality of a successful European market for online classified services.”
The company stated that the Commission ignored the fact that Facebook users can choose to “engage with Marketplace, and many do not.”
Meta noted that online marketplaces, including global sites like eBay, platforms across Europe like Vinted, and national services, continue to grow.
Meta said it would comply with the Commission’s order to cease the practice and not repeat it, but hinted that it would appeal.
