EU Levies $840 Million Penalty on Meta for Antitrust Breaches

The European Commission sanctions Meta for unfair practices connected to Facebook Marketplace.

The European Union has imposed an $840 million fine on Meta Platforms for exploiting its dominant position by linking its online classified ads service, Facebook Marketplace, with its social network, Facebook.

The European Commission concluded that Meta participated in unfair trading by requiring Facebook users to access Marketplace, thereby placing other online classified ads providers at a disadvantage.

The investigation officially started in June 2021, with concerns highlighted in December 2022 regarding Meta's competitive tactics.

Introduced in 2016 and extended to Europe in 2017, Facebook Marketplace has faced controversy due to its integration with Facebook, which the EU argues constitutes an illegal 'tie.' Meta, headquartered in Menlo Park, California, intends to appeal the decision but will comply with the ruling in the meantime.

The company argues that the EU's claims lack proof of harm to competitors and ignore users' freedom to engage with Marketplace.

According to EU antitrust rules, companies could be fined up to 10% of their global revenue.