EU fines Meta €797m for antitrust breach in Marketplace

The European Commission announced on Thursday that it has fined Meta €797.72m for violating EU antitrust regulations by linking its classified ads service, Facebook Marketplace, to its main social network, Facebook.

The Commission stated on its website that this integration gives Meta an unfair advantage in the online classified ads sector, potentially harming competition and limiting access for other providers.

Meta, the US-based technology giant, operates Facebook, one of the world’s largest social networks, along with Facebook Marketplace, which enables users to buy and sell goods.

The Commission’s investigation found that Meta holds a dominant position in the market for personal social networks across the European Economic Area and in national online display advertising markets on social media platforms.

As part of the ruling, the Commission ordered Meta to end this practice and refrain from similar behaviour in the future.

“The fine of €797.72m was set on the basis of the Commission’s 2006 guidelines on fines,” the EU stated.

“In setting the level of the fine, the Commission 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 considered Meta’s total turnover to ensure sufficient deterrence for a company with resources as significant as Meta’s,” the EU noted.

In June 2021, the Commission opened formal proceedings into possible anticompetitive conduct by Facebook. In December 2022, the Commission sent Meta a Statement of Objections, to which Meta responded in June 2023.

Under EU law, market dominance is not inherently illegal, but companies in dominant positions have a responsibility to avoid practices that could stifle competition in their own or related markets, the EU added.

The regulator explained that fines imposed on companies found in breach of EU antitrust rules are paid into the general EU budget.

“These proceeds are not earmarked for particular expenses, but Member States’ contributions to the EU budget for the following year are reduced accordingly. The fines therefore help to finance the EU and reduce the burden on taxpayers.”