EU fines Meta $842 million in a Facebook Marketplace antitrust case

The executive arm of the European Union isn’t shying away from slapping major tech companies with hefty fines. The European Commission has fined Meta €797.12 million ($842 million) for violating antitrust regulations.

The EC says that by tying Facebook Marketplace to Facebook and “imposing unfair trading conditions on other online classified ads service providers,” Meta “abused its dominant positions" in the social networking space. Regulators determined that all Facebook users are “regularly exposed” to Marketplace, even if they don’t want to be. To that end, the link between the two services gives Meta “a substantial distribution advantage which competitors cannot match.”

In addition, the EC found that third-party classified ads services that advertised on the likes of Facebook and Instagram were subject to unfair trading conditions. “This allows Meta to use ads-related data generated by other advertisers for the sole benefit of Facebook Marketplace,” regulators contended.

The fine was determined based on the duration and extent of the infringement, as well as Meta’s revenue. The Commission also told Meta to end the practice and avoid repeating such conduct or trying something similar.

Meta said it will appeal the ruling. “This decision ignores the realities of the thriving European market for online classified listing services and shields large incumbent companies from a new entrant, Facebook Marketplace, that meets consumer demand in innovative and convenient new ways,” it claimed.

The company is trying to appease European regulators on other fronts. The EC said in the preliminary findings of an ongoing investigation that Meta violated the Digital Markets Act with its approach to an ad-free subscription, as it required EU users to consent to highly targeted advertising or pay to avoid it. This week, Meta lowered the monthly subscription fee and said it would offer an advertising option that won't use as much of a user's data, though this will include some unskippable ads.