Meta hit with $840 million EU fine for ‘abusive’ Facebook Marketplace ad practices
The EU fined online giant Meta almost 800 million euros on Thursday for breaching antitrust rules by giving users of its Facebook social network automatic access to classified ads service Facebook Marketplace.
The European Commission said the US tech titan also abused its dominant position by imposing unfair trading conditions on other online classified ads service providers that advertise on its platforms.
Meta said it would appeal, alleging the decision ignored “the realities of the thriving European market for online classified listing services”.
“Facebook users can choose whether or not to engage with Marketplace, and many don’t. The reality is that people use Facebook Marketplace because they want to, not because they have to,” the firm said in a statement.
The fine is the latest in a string of hefty penalties the commission, the regulator for the 27-nation European Union, has imposed against Big Tech companies over their practices in recent years — and ranks among the 10 largest antitrust fines.
The commission said that because Facebook Marketplace was tied to Facebook, the former enjoyed a “substantial distribution advantage which competitors cannot match.”
“All Facebook users automatically have access and get regularly exposed to Facebook Marketplace whether they want it or not,” it said.
Additionally Meta imposed unfair conditions on competitors in the classified ads service who advertised on Facebook and Instagram, the commission said.
This allowed it to “use ads-related data generated by other advertisers for the sole benefit of Facebook Marketplace”, it said.
Meta contended it did not “use advertisers’ data for this purpose” and has “built systems and controls to ensure that”.
“It is disappointing that the Commission has chosen to take regulatory action against a free and innovative service built to meet consumer demand,” the company said.
Meta’s dominant position in the market for personal social networks comes with a special responsibility not to abuse it by restricting competition, according to the EU.
The EU fined the company 797.72 million euros ($840 million), a sum the commission said took into account the “duration and gravity of the infringement”, as well as the turnover of Meta and Facebook Marketplace.
Meta’s total revenue last year stood at around $135 billion (125 billion euros).
