EU Hits Meta with Record Fine Over Marketplace Practices

Meta, the parent company of Facebook, has been hit with a massive €797.72 million ($841 million) fine by the European Union for violating antitrust rules. The penalty stems from allegations that Meta unfairly linked its Facebook Marketplace feature to its social network, giving it an advantage over competing online classified ad platforms.

The EU Commission first raised concerns in 2022, accusing Meta of using its dominant position in social media to distort competition. They argued that Facebook users were automatically connected to Marketplace, giving it a reach other services couldn’t match and essentially making every Facebook user a Facebook Marketplace user. Additionally, the Commission claimed Meta imposed unfair conditions on rival classified ad providers that advertise on Facebook or Instagram.

he investigation concluded that Meta’s actions restricted competition and hindered smaller players in the online classified ads space. The fine reflects the severity and length of the violations and considers Meta’s significant global revenue. Meta has announced plans to appeal, arguing that its practices benefit users and don’t harm competition. The company pointed out that online marketplaces existed on Facebook organically before the launch of Marketplace in 2016, with hundreds of thousands of user-created buy-and-sell groups.

This fine is part of broader EU efforts to regulate tech giants and protect fair competition. If the ruling stands, it could force changes to Marketplace operations in the EU, potentially reshaping the region’s online classified ad market – and possibly having an impact on Meta’s income and the structure of Facebook and its Facebook Marketplace as a whole.