The European Commission has fined Meta €797.72 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.
The Commission’s investigation found that Meta is dominant in the market for personal social networks, which is at least European Economic Area (‘EEA’) wide, as well as in the national markets for online display advertising on social media.
In particular, the Commission found that Meta abused its dominant positions in breach of Article 102 of the Treaty on the Functioning of the European Union (‘TFEU’) by:
Tying its online classified ads service Facebook Marketplace to its personal network Facebook. This means that all Facebook users automatically have access to get regularly exposed to Facebook Marketplace whether they want it or not.
The Commission found that competitors of Facebook Marketplace may be foreclosed as the tie gives Facebook Marketplace may be foreclosed as the tie gives Facebook Marketplace a substantial distribution advantage which competitors cannot match.
Unilaterally imposing unfair trading conditions on other online classified ads services providers who advertise on Meta’s platforms, in particular on it’s very popular social networks Facebook and Instagram. This allows Meta to use ads-related data generated by other advertisers for the sole benefit of Facebook Marketplace.
The Commission has ordered Meta to bring the conduit effectively to an end, and to refrain from repeating the infringement or from adopting practices with an equivalent object or effect in the future.
Meta posted: Our response to the European Commission’s Decision on Facebook Marketplace
Today, the European Commission announced a decision claiming that Facebook Marketplace has hindered completion for online marketplaces in Europe. This decision ignores the realities of the thriving European market for online classified listing services and shields large incumbent companies from a new entrant, Facebook Marketplace, that meets consumer demand in innovative and convenient new ways. We will appeal this decision to ensure that consumers are well served in the EU.
Engadget reported: The executive arm of the European Union isn’t shying away from slapping major tech companies with hefty fines. The European Commission has fined Meta €797.72 ($842 million) for violating antitrust regulations.
The EC found that third-party classified ads serves that advertised on the likes of Facebook and Instagram were subject to unfair trading conditions. “This allows Meta to use ads-related data generated by other advertisers for the sole benefit of Facebook Marketplace,” regulators contended.
In my opinion, it appears that Meta is going to have to face the European Commission’s decision on the €797.72 million.