Meta is facing a fine of 797 million euros from the EU for breaching its antitrust rules and breaching its market dominance in its Facebook Marketplace.
According to the case, the European Commission found that Meta was giving Facebook users an unfair advantage across Facebook Marketplace by automatically giving them access to classified ads services associated with the marketplace.
It also found that the tech giant further abused its dominance in the market by unfair trading conditions it imposed on other online classified ads service providers that advertised across Facebook.
“Facebook users can choose whether or not to engage with Marketplace, and many don’t. The reality is that people use Facebook Marketplace because they want to, not because they have to,” the Meta said in a statement, saying they would appeal the fine and ruling.
The company said that the ruling chose to overlook “the realities of the thriving European market for online classified listing services.”
The EU contented that because Facebook Marketplace was tied to Facebook, the marketplace benefited from “a substantial distribution advantage which competitors cannot match.
“All Facebook users automatically have access and get regularly exposed to Facebook Marketplace whether they want it or not,” it continued.
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The EU also said that Meta implemented unfair conditions on competing classified ads service providers who advertised on its platforms, contending that Meta used “ads-related data generated by other advertisers for the sole benefit of Facebook Marketplace.”
Meta completely denied these allegations, saying that it did not “advertisers’ data for this purpose” and in fact has “built systems and controls to ensure that” it does not happen.
In setting the nearly 8m euro fine, the EU accounted for the “duration and gravity of the infringement,” as well as Facebook Marketplace’s turnover, as well as Meta’s total turnover.
While the EU says that companies exhibiting market dominance should not exist in principle, those that display market power need to uphold a certain set of standards as to not abuse this power.
Meta’s revenue last year totalled 125bn euros, or £104bn.





