LONDON — The European Union has penalized Meta, the parent company of Facebook, with a substantial fine of approximately 800 million euros for what officials describe as “abusive practices” related to its Marketplace platform, which serves as an online classifieds hub.
The European Commission, responsible for ensuring regulatory compliance among the 27 member states, concluded a prolonged investigation that revealed Meta’s abuse of its leading market position through various anti-competitive tactics, resulting in the hefty penalty of 797.72 million euros (about $841 million).
Authorities in Brussels accused Meta of hindering fair competition by linking its Marketplace services to the vast Facebook social network, thus presenting users with Marketplace options without their consent while excluding competing platforms.
The commission highlighted concerns that Meta was imposing detrimental trading conditions, particularly through a terms of service that permitted the use of advertising-related data obtained from competitors that advertise on platforms like Facebook or Instagram, consequently giving an unfair advantage to Marketplace.
In response, Meta released a statement arguing that the ruling does not substantiate any allegation of “competitive harm” inflicted upon rivals or consumers and claimed it overlooks the reality of a vibrant and competitive market for online classified services in Europe. The company expressed intentions to challenge the decision legally.