The EU has imposed a substantial fine on Meta for violating antitrust laws with its Facebook Marketplace integration.
- Meta’s integration of Facebook Marketplace into its social network was found to give it an unfair competitive edge.
- EU competition officials have criticised Meta for disadvantaging rival classified services through its marketplace strategy.
- Meta plans to challenge the EU ruling, arguing that the decision overlooks the competitive landscape of online classifieds.
- This ruling marks another instance of the EU’s rigid enforcement of antitrust laws against major US tech firms.
The European Union has fined Meta €800 million, asserting that the company’s integration of Facebook Marketplace into its social network violates competition laws. By linking these services, Meta reportedly gained an unfair advantage over competing online classified services, as stated by Margrethe Vestager, the European Commission’s executive vice-president for competition policy. The integration was deemed illegal under EU antitrust regulations, which Meta plans to contest.
Meta has announced its intention to appeal the decision, emphasising that the ruling fails to demonstrate any “competitive harm” to its rivals or consumers. Moreover, the company argued that the choice for users to engage with Facebook Marketplace remains optional, with a large portion of users opting not to use the feature. Facebook launched Marketplace in 2016, subsequently expanding it across Europe in the following year.
The European Commission’s investigation into Meta’s practices began in 2021, asserting that under EU antitrust rules, companies found in breach can face fines as high as 10% of their global revenue. This fine is a part of a broader regulatory campaign against Meta within Europe, highlighting the EU’s commitment to regulating the power of large tech firms.
Previously, the company was hit with a record €1.2 billion fine for infringing upon EU data privacy standards. The investigation revealed that Meta failed to sufficiently safeguard user data during transfers to the United States, exposing information to the oversight of US authorities. Situated in Dublin, Meta’s European operations are under intense scrutiny as regulators tighten their grip.
In the United States, Meta faces additional challenges, with the Federal Trade Commission having filed a lawsuit against it over its strategic acquisitions of Instagram and WhatsApp. This lawsuit alleges that these acquisitions were aimed at eliminating competition, a claim Meta disputes, arguing instead that they have positively impacted competition and consumer choice.
The European Union’s resolute stance on antitrust enforcement is clearly evident with this latest ruling against Meta. As Margrethe Vestager prepares to exit her role as competition commissioner, her successor, Teresa Ribera, is anticipated to balance the regulation of technology firms with supporting European businesses.
The EU’s significant fine against Meta underscores its determination to curb the influence of dominant tech giants within the region.
