Publish: 10:56, 15 Nov, 2024 Updated: 11:05, 15 Nov, 2024

EU fines Meta $840 million for 'abusive' practices on FB marketplace

Online Desk
EU fines Meta $840 million for 'abusive' practices on FB marketplace
EU flag and Meta logo are seen in this illustration taken, May 22, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

The European Union has imposed a hefty fine of nearly 800 million euros ($840 million) on Meta, accusing the company of breaching antitrust rules by giving users of its Facebook platform automatic access to Facebook Marketplace, its classified ads service. The European Commission stated on Thursday that Meta leveraged its dominant position to impose unfair trading conditions on competing online classified ad services.

Margrethe Vestager, the EU's competition chief, emphasized on Thursday that the decision highlights illegal conduct under EU competition law. "Meta must now cease these practices," Vestager said in a statement.

Ms. Vestager said, “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. Meta tied its online classified ads service Facebook Marketplace to its personal social network Facebook and imposed unfair trading conditions on other online classified ads service providers. It did so to benefit its own service Facebook Marketplace, thereby giving it advantages that other online classified ads service providers could not match. This is illegal under EU antitrust rules. Meta must now stop this behavior.” 

Meta, however, has vowed to appeal the decision, arguing that the ruling fails to reflect "the realities of the dynamic and thriving European market for online classified listing services." The company insisted that Facebook users have the choice to engage with Marketplace, and many choose not to. "People use Facebook Marketplace because they want to, not because they have to," Meta stated.

Meta response also said, “this decision ignores the realities of the thriving European market for online classified listing services and shields large incumbent companies from a new entrant, Facebook Marketplace, that meets consumer demand in innovative and convenient new ways. We will appeal this decision to ensure that consumers are well served in the EU.”

The fine ranks among the top 10 largest antitrust penalties ever imposed by the EU and marks the latest in a series of substantial fines against major tech companies. In recent years, the European Commission has become increasingly active in regulating Big Tech's practices, particularly those that affect competition and consumer choice.

According to the Commission, Meta’s actions gave Facebook Marketplace a significant and unfair advantage. By integrating the service directly into Facebook, the platform automatically exposed all users to Marketplace, regardless of whether they intended to use it. The Commission argued that this forced visibility and access made it virtually impossible for competitors to match Meta's reach and user base.

Additionally, the Commission accused Meta of imposing "unfair" conditions on rival classified ad services that advertise on Facebook and Instagram. These practices, regulators say, harmed competition in the online classified ads market.

Meta's appeal will likely focus on challenging both the scope of the fine and the regulatory findings, but the case highlights ongoing tensions between global tech giants and European regulators focused on enforcing stricter antitrust laws.

Bd-pratidin English/ Jisan

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