EU Slaps Meta with €797 Million Fine for Unfair Practices Linked to Facebook Marketplace
The European Commission fines Meta Platforms €797.72 million for unfair practices related to Facebook Marketplace. Meta intends to appeal the decision but will comply in the interim. The Commission alleges that Meta tied Facebook Marketplace to its social network unfairly.
This decision, as reported by Reuters, comes after the European Commission found Meta guilty of breaching EU antitrust regulations by linking Facebook Marketplace to its social network and imposing unjust trading conditions on other online classified ads providers.
Meta has expressed its intention to challenge the ruling, although it has committed to complying with the decision promptly. The company has assured that it will work diligently to introduce a solution that addresses the concerns raised by the European Commission.
The European Commission's action follows a two-year investigation into allegations that the tech giant unfairly promoted its classified ads service, Facebook Marketplace, by bundling it with its social network. The Commission initiated formal proceedings in June 2021 and later raised concerns in December 2022 regarding Meta's integration of Facebook with its online classified ad services.
Facebook Marketplace was introduced in 2016 and expanded to various European countries a year later. The EU's decision argues that Meta forces Facebook Marketplace on users through an unlawful "tie," a claim that Meta refutes by highlighting that Facebook users have the autonomy to choose whether to engage with Marketplace, and many opt not to do so.
Despite the Commission's assertion that Marketplace could impede the growth of established online marketplaces in the EU, Meta contends that there is no evidence of harm to competitors. It is important to note that companies risk fines of up to 10% of their global turnover for violating EU antitrust regulations.
The European Commission fines Meta Platforms €797.72 million for unfair practices related to Facebook Marketplace.
Meta intends to appeal the decision but will comply in the interim.
The Commission alleges that Meta tied Facebook Marketplace to its social network unfairly.
Source: REUTERS