The European Union has imposed an €800m fine on Meta for linking its social network with Facebook Marketplace, violating competition laws.
- This decision highlights ongoing regulatory actions by the EU against Meta, which is also under scrutiny in the US for alleged anti-competitive practices.
- Meta plans to appeal the ruling, arguing that no competitive harm to rivals or consumers has been demonstrated.
- The European Commission found Meta’s integration of Marketplace with its social network to be illegal, giving it an unfair advantage.
- This regulatory move is part of broader efforts to curb the dominance of major US tech companies in Europe.
The European Union has levied a substantial €800m fine on Meta, citing the company’s breach of antitrust regulations by integrating Facebook Marketplace with its social network platform. This integration was deemed by the European Commission as an unfair advantage over other online classified services. Margrethe Vestager, the executive vice-president for competition policy at the European Commission, stated that Meta’s actions provided them with advantages unmatched by competitors, branding the conduct as illegal under EU policies. She firmly stated, “Meta must now stop this behaviour.”
Meta, which also owns Instagram and WhatsApp, has indicated its intention to challenge the ruling. The company contends that the decision does not substantiate any actual harm to competition or to consumers. Meta highlighted that many users opt not to utilise Marketplace, positioning it as a voluntary service on the platform. The Marketplace feature, introduced in 2016, saw a Europe-wide expansion in 2017.
The European Commission initiated an investigation into these practices in 2021. Under European Union antitrust laws, any company found in violation could face penalties reaching 10% of its global revenue. This case forms a continuum of regulatory scrutiny on Meta in Europe, following last year’s record €1.2 billion fine for violating EU data privacy rules. This prior case involved inadequate protections for European data transferred to the United States, exposing it to potential surveillance by US agencies.
Meta’s headquarters for European operations is based in Dublin, Ireland. Besides challenges in Europe, Meta is also embroiled in a legal battle in the United States. The Federal Trade Commission has filed a lawsuit against Meta, accusing it of attempting to suppress competition through its acquisitions of Instagram and WhatsApp. Meta has defended these acquisitions, asserting that they have served to benefit competition and consumers.
As European regulators continue to increase pressure on large tech entities, Meta has delayed the release of its new AI model in Europe, citing “unpredictable” regulatory conditions as the cause. This latest antitrust decision exemplifies the EU’s growing commitment to regulate the authority of US technology giants. Meanwhile, the upcoming departure of Margrethe Vestager from her role may signal a shift in future regulatory approaches. Her anticipated successor, Teresa Ribera, may aim to strike a balance between supervising tech companies and supporting European business interests.
The European Union’s action against Meta underscores the increasing regulatory challenges that major US tech firms face in Europe.
