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Meta penalised €797.72M for abusing market power with Facebook Marketplace

The penalty stems from Meta's integration of Facebook Marketplace into its main platform, which the EU Commission argues gave the service an unfair competitive advantage in the online classified ads market.

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Meta has been hit with a substantial fine of €797.72 million (841 million USD) by European regulators for violating EU antitrust rules. The penalty stems from Meta's integration of Facebook Marketplace into its main platform, which the EU Commission argues gave the service an unfair competitive advantage in the online classified ads market.

In 2022, the EU Commission accused Facebook of abusing its dominant position by leveraging its vast social network to favour Facebook Marketplace. Users were given access to Marketplace automatically, which, according to the Commission, distorted competition. Additionally, Meta was accused of imposing unfair trading conditions on rival online classifieds that advertise on Facebook and Instagram.

The Commission concluded that Meta's dominance in personal social networking and online display advertising within the European Economic Area allowed it to suppress competitors and limit their advertising reach. When determining the fine, the EU considered the severity and duration of the violations, as well as the revenues generated by Facebook Marketplace and Meta's overall financial scale, to ensure the penalty was a strong deterrent.

Meta plans to appeal the decision, contending that online marketplaces predated Facebook Marketplace and continue to thrive despite its presence. Meta also argued that the EU’s case relies on hypothetical impacts rather than actual harm, and that EU competition law is meant to foster innovation, not protect established players from disruption.

The ruling highlights the EU's broader efforts to regulate tech giants and enforce consumer protection rules. While Meta might appeal, the outcome could influence whether Facebook Marketplace continues operating in the EU. In the meantime, Meta will need to address the concerns raised by regulators.

unfair trading conditions EU Commission violations facebook marketplace