The European Commission fined Meta €798m for breaking competition rules, specifically for giving its Facebook Marketplace service an unfair advantage over others. This is not the first time Meta has faced a fine from the EU.
Background
This is not the first time Meta has faced a fine from the EU over competition rules. In 2017, it was told to pay €110m for not handing over correct information when it purchased WhatsApp. Additionally, the Irish Data Protection Commissioner had previously fined Meta more than €1bn for mishandling people’s data when transferring it between Europe and the United States.
Investigation and Ruling
The European Commission opened an investigation in 2021 after Meta’s rivals complained that Facebook Marketplace gave it an unfair advantage. The Commission found that by embedding Facebook Marketplace within its social network, Meta had impeded other online classified ads service providers, giving them unfair trading conditions.
Response from Meta
Meta has rejected the Commission’s findings and will appeal. In a statement, they said that the decision ignores market realities and will only serve to protect incumbent marketplaces from competition.
EU Antitrust Head’s Statement
EU antitrust head Margrethe Vestager said that Facebook had impeded other online classified ads service providers to benefit its own service, giving it advantages that others could not match. She added that Meta “must stop this behavior” and refrain from repeating the infringement.
Key Points
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This is not the first time Meta has faced a fine from the EU over competition rules.
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The investigation was opened in 2021 after Meta’s rivals complained that Facebook Marketplace gave it an unfair advantage.
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Meta has rejected the Commission’s findings and will appeal.
