Meta Platforms, the parent company of Facebook, has been fined $841 million by the European Union for what regulators described as "abusive practices" linked to its Marketplace classified ads business. This decision marks the first time Meta has faced an EU antitrust penalty, underscoring the bloc's continued scrutiny of Big Tech firms.
The European Commission, which serves as the EU's top antitrust enforcer, announced the fine after a prolonged investigation. It concluded that Meta had unfairly tied its Marketplace service to its dominant social network, forcing Facebook users to engage with the classified ads platform. "Meta's practices gave it advantages that other online classified ads service providers could not match," said Margrethe Vestager, the Commission's executive vice-president in charge of competition policy.
Meta has refuted the Commission's findings, arguing that the decision fails to demonstrate any substantial "competitive harm" to rivals or consumers. The company highlighted that Facebook users retain the option to avoid interacting with Marketplace and stated that alternative platforms, including global competitors like eBay and Europe-wide services, continue to thrive.
In response to the Commission's directive, Meta pledged compliance but vowed to appeal. "We will appeal the decision. In the meantime, we will comply and will work quickly and constructively to launch a solution which addresses the points raised," the company stated. The case, initiated in 2021, is part of broader scrutiny of Meta's business practices, with additional EU investigations focused on issues ranging from privacy breaches to child safety measures on its platforms.
The Commission found that Meta's terms of service enabled it to exploit advertising-related data from competing platforms for its benefit, raising further concerns about anti-competitive conduct. Vestager emphasized that Meta's behavior was illegal under EU antitrust rules and that corrective measures were necessary.
Meta continues to face legal challenges within the EU, having previously been fined $1.3 billion for privacy law violations related to data transfers to the U.S. Despite its appeal, Meta's regulatory battles underscore the increasing challenges tech giants face in complying with Europe's stringent regulations.
