EU fines Meta $840M for antitrust breach involving Facebook ads
This photograph taken on October 28, 2021 shows the Meta logo on a laptop screen in Moscow. (AFP Photo)
The European Commission fined Meta Platforms €798 million ($840 million) on Thursday for violating antitrust rules by automatically granting Facebook users access to its marketplace service, a move seen as an abuse of its dominant position in the market.
EU antitrust action targets Facebook marketplace
The EU’s decision came after a thorough investigation into Meta’s business practices. The commission found that Meta abused its dominant position by integrating Facebook Marketplace with its main social media platform, disadvantaging competing online classified ad providers.
According to the ruling, Meta‘s practices forced users into the service, limiting fair competition. The hefty fine is one of the largest imposed on the company in recent years as the EU continues its crackdown on big tech.
Meta denies violations, plans to appeal
Meta quickly responded to the fine, denying any wrongdoing and stating its intent to appeal the decision. The company argued that its integration of the marketplace with Facebook enhances user experience and benefits small businesses by providing an accessible platform for listing.
“We believe we comply with EU antitrust rules and will challenge the decision,” a Meta spokesperson said.
“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, 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.
