EC fines Meta $845M for exploiting Facebook Marketplace
The European Commission has imposed a fine of nearly 845 million dollars on Meta for unfair commercial practices related to its Facebook Marketplace service. The EC determined that by linking the sales platform with Facebook, Meta gained an unfair market advantage.
4:41 PM EST, November 14, 2024
The European Commission accused the digital giant of gaining an unfair market advantage through the integration of Facebook and Marketplace. Facebook users have automatic access to the Marketplace, and according to the Commission, this may limit competition in the advertising and sales platform market. The EC emphasizes that competitors without such reach may be partially excluded from the market.
The EC also accused Meta of engaging in unfair practices by unilaterally imposing unfavorable business conditions on other sales platform operators. By maintaining a privileged position, Meta was able to exploit advertisers' data to its advantage, without providing equal opportunities for other companies. "The European Commission has fined Meta €797.72 million ($841 million) for breaching EU antitrust rules by tying its online classified ads service Facebook Marketplace to its personal social network Facebook and by imposing unfair trading conditions on other online classified ads service providers," emphasized Commissioner Margrethe Vestager.
Meta faces a hefty fine from the EC: "Deterrent effect"
Meta was fined 845 million dollars by the EC. The Commission took into account the company's total turnover to "ensure sufficient deterrence for a company with resources as significant as Meta's." The company declared on Thursday that it will appeal the EC's decision.
The European Commission's verdict serves as another reminder for tech giants. They are required to abide by antitrust laws, which do not prohibit market dominance but demand accountability for practices used against the competition.
