The European Union has slapped Meta Platforms with a hefty €798 million ($840 million) fine for breaching EU antitrust rules related to its online classifieds service, Facebook Marketplace.
The fine comes after an investigation by the European Commission, which accused Meta of using its dominant position on Facebook to unfairly boost Marketplace by bundling the service with its social network, thereby imposing unfair trading conditions on competitors.
The EU's executive body stated that Meta's actions were anti-competitive and violated European laws designed to maintain a fair market. The Commission claims that Meta's practice of linking Facebook Marketplace to its social media platform gave it an unfair advantage over other online classifieds providers.
Since Facebook is widely used across Europe, this move effectively forced users to engage with Marketplace, limiting the opportunities for rival platforms.
Meta has confirmed that it plans to appeal the decision but has also expressed its intent to comply with the ruling in the meantime. In a statement, the company assured that it would work quickly and constructively to develop solutions that address the issues raised by the Commission.
This fine is a continuation of the European Union's scrutiny of major tech companies like Meta. The Commission initially launched its investigation in June 2021, focusing on Meta’s alleged anti-competitive behavior.
The case centers on whether bundling Facebook Marketplace with Facebook itself stifled competition in the European market for online classified ads. While Meta argued that users have the option to ignore the Marketplace feature, the EU believes that the forced visibility and integration harmed competitors by leveraging Facebook's massive user base.
The ruling follows other significant antitrust actions against tech giants in recent years, with the EU increasingly taking a strong stance against practices perceived to undermine fair competition.
Under EU law, companies found guilty of antitrust violations can be fined up to 10% of their global turnover, making the €798 million penalty a significant blow for Meta.