Meta Platforms, the parent company of Facebook, has been fined $840 million by the European Union for allegedly violating antitrust rules.
The penalty stems from the EU's claim that Meta unfairly tied its Facebook Marketplace service to the Facebook social network, giving it an advantage over other online classified ad platforms.
EU Accuses Meta of Antitrust Violations Over Facebook Marketplace
The European Commission, the EU's executive branch, stated that Meta's actions forced Facebook users to automatically access Marketplace, a move that restricted fair competition, CNN said.
Meta launched Marketplace in 2016, allowing users to buy, sell, and trade various items such as furniture, clothing, and cars. The platform expanded into several European countries a year later.
The EU's investigation began in 2019 and focused on whether the integration of Facebook and Marketplace created unfair advantages. According to the Commission, this setup allowed Meta to use its dominant position in the social media space to promote Marketplace, sidelining competitors.
The company also allegedly imposed unfair trading conditions on rival classified ad services, limiting their growth opportunities.
Margrethe Vestager, the EU's antitrust chief, stated that Meta's practices gave it benefits that competitors could not replicate, calling the behavior illegal under EU competition laws. She emphasized that Meta must discontinue these practices immediately.
Meta Challenges EU Antitrust Ruling
According to NY Times, Meta disagreed with the EU's conclusions, arguing that users have the freedom to decide whether or not to engage with Marketplace.
The company stated that many Facebook users do not use Marketplace, which it claims invalidates the argument of forced integration.
In its defense, Meta said Marketplace was developed to meet user demand and had not harmed competition from platforms like eBay and Vinted.
Meta plans to appeal the decision, setting the stage for a lengthy legal battle. Despite the appeal, the company said it would comply with the ruling while working on a solution to address the EU's concerns.
The fine highlights the growing scrutiny of large technology firms by global regulators. Meta is no stranger to such actions; in 2023, the company paid a €1.2 billion fine for violating EU data protection laws. In the United States, the Federal Trade Commission is suing Meta for alleged antitrust violations.
