Meta, the parent company of Facebook, Instagram, and WhatsApp, has been hit with a €797.72 million fine by the European Commission for alleged anticompetitive practices involving Facebook Marketplace. The European regulators ruled that Meta abused its dominant position by linking its online classified ads service, Facebook Marketplace, with Facebook, creating unfair trading conditions for other online classified ad providers.
The fine marks the culmination of an investigation that began in June 2021. In December 2022, regulators determined that Facebook Marketplace violated EU antitrust rules. Today’s penalty is a response to that violation.
“Today, we fine Meta €797.72 million for abusing its dominant positions in the markets for personal social network services and for online display advertising on social media platforms,” said Margrethe Vestager, Executive Vice-President in charge of competition policy at the European Commission.
Meta announced plans to appeal the decision, stating, “This ruling overlooks the realities of a thriving European market for online classified listing services and shields large incumbent companies from an innovative new player, Facebook Marketplace, that meets consumer demand in convenient new ways.”
Over recent years, Meta has faced billions in fines in Europe for various infractions. In May 2023, it received a €1 billion fine for GDPR violations, and it is currently involved in multiple legal proceedings over privacy and competition issues.
The fine comes amidst significant regulatory shifts globally, with increasing scrutiny over tech giants, not only in Europe but potentially soon in the U.S. as well. Experts suggest that changes in data protection, social media regulation, and online advertising are likely to intensify, and Meta could face ongoing regulatory pressures.