Meta Fined €798m by European Commission for Competition Law Violation
The European Commission has imposed a substantial fine of €798 million (£664 million) on Meta for breaching competition law through its integration of Facebook Marketplace within its social network. The regulatory body argues that this practice created unfair trading conditions that disadvantaged alternative classified ads services.
EU antitrust head Margrethe Vestager explicitly stated that Facebook deliberately impeded other online classified ads service providers to benefit its own Marketplace service. By doing so, Meta gave its platform advantages that competitors could not match, effectively creating an uneven playing field in the digital marketplace.
In addition to the significant financial penalty, the Commission has ordered Meta to cease imposing these anti-competitive conditions on other services. Vestager emphasized that Meta “must stop this behaviour” and has been instructed to refrain from repeating the infringement.
Meta, however, has strongly rejected the Commission’s findings. The company claims there is “no evidence” of harm to either competitors or consumers, arguing that the decision “ignores market realities” and will only serve to protect existing marketplaces from competition.
The ruling stems from an investigation initiated in 2021 after Meta’s rivals complained about Facebook Marketplace’s alleged unfair competitive advantage. This is not Meta’s first encounter with regulatory scrutiny, though it represents the company’s first major fine specifically related to competition rules.
Previously, Meta was required to pay €110 million in 2017 for not providing correct information during its WhatsApp acquisition. The company has also faced significant penalties from the Irish Data Protection Commissioner, including a €1 billion fine for mishandling data transfers between Europe and the United States.
In 2021, the UK’s Competition and Markets Authority (CMA) imposed a £50m fine on Meta related to its attempted acquisition of Gif-maker Giphy, ultimately demanding that Meta sell the company.
This latest action reflects a broader global trend of increased regulatory pressure on big tech companies. Regulators worldwide are taking a more aggressive stance in addressing potential monopolistic practices and market dominance.
The US government is currently considering similar actions, including a potential breakup of Google, signaling a more interventionist approach to tech industry regulation.
Meta has indicated its intention to appeal the European Commission’s decision, suggesting the legal battle over Facebook Marketplace’s market practices is far from over.
The €798 million fine represents a significant challenge for Meta, highlighting the increasing willingness of regulatory bodies to take substantial action against what they perceive as anti-competitive behavior in the digital marketplace.
As tech giants continue to face heightened scrutiny, this ruling serves as a clear message about the importance of fair competition and the potential consequences of perceived market manipulation.
