Meta, the parent company of Facebook, has been hit with a nearly €800 million fine by the European Commission for anti-competitive practices related to its classified ads service, Facebook Marketplace.
The EU’s antitrust regulators accused Meta of improperly linking Facebook Marketplace to its social media platform, Facebook, and imposing unfair terms on competing advertising providers.
According to Competition Commissioner Margrethe Vestager, the company’s actions were designed to give Facebook Marketplace a competitive edge over other online classified ad services, allowing it to benefit in ways that rivals could not match. Meta was ordered to stop these practices.
The €798 million fine marks the first antitrust penalty for Meta, though the company had previously been fined €110 million in 2017 for failing to provide accurate information during the EU’s review of its WhatsApp acquisition. The European Commission also stated that Meta holds a dominant position in both personal social networks across the EU and in the online display ad markets.
Meta has stated its intention to challenge the fine, emphasizing its commitment to compliance. In a blog post, the company expressed disappointment over the regulatory action, saying: “It is disappointing that the Commission has chosen to take regulatory action against a free and innovative service built to meet consumer demand, particularly when senior European political figures are calling for the EU to be more competitive, innovative and forward-thinking.”
The fine follows complaints from Meta’s rivals, who argued that the company unfairly linked its Marketplace service with Facebook and used non-public advertising data to optimize its performance. The European Commission launched an investigation into Meta’s practices in June 2021.
