EU Fines Meta €797 Million in Antitrust Ruling
The European Commission has fined Meta €797.72 million ($834 million) due to its practices of integrating Facebook Marketplace with its social network, Facebook, saying this breached antitrust rules in Europe.
The European Commission opened a formal investigation into Meta’s practices in June 2021, saying, “Facebook collects vast troves of data on the activities of users of its social network and beyond, enabling it to target specific customer groups.” The Commission aimed to investigate whether the data Facebook collects gives it an unfair advantage in its classified ads business.
The Commission delivered its Statement of Objections to Meta in December 2022, saying it held the “preliminary view that the company breached EU antitrust rules by distorting competition in the markets for online classified ads.” The Commission was also concerned that “Meta imposes unfair trading conditions on Facebook Marketplace’s competitors for its own benefit.” Meta responded in June 2023.
Ultimately, the Commission found that Meta breached antitrust laws by tying Facebook Marketplace to Facebook, giving its users access and regular exposure to Facebook Marketplace. Given Meta’s dominant position in the European Economic Area (EEA), this created a substantial distribution advantage over competitors in the market.
In addition, Facebook leverages data collected from its users to give Facebook Marketplace an even greater edge.
The Commission determined the fine amount based on its 2006 fine guidelines. It took into account the length of time that the behavior was in place and the severity of the antitrust breach. It also weighted both the turnover of Facebook Marketplace and Meta’s overall turnover to ensure that the fine is a deterrent for any future behavior.
The Commission has “ordered Meta to bring the conduct effectively to an end and to refrain from repeating the infringement.”
Meta stated that it would appeal the decision but would also work to address the Commission’s concerns.
