Europe fines Meta almost $840 million for linking Marketplace to Facebook
Fabrice COFFRINI/AFP/Getty Images
- On Thursday, the European Commission fined Meta almost 798 million euros (about $840 million).
- It said Meta linked Facebook Marketplace to its social network and imposed unfair conditions on rivals.
- Meta said it will appeal, saying people use Marketplace "because they want to, not because they have to."
Meta was fined almost 798 million euros (about $840 million) for breaching European rules by linking Facebook Marketplace to its social network Facebook and imposing unfair trading conditions on other classified platforms.
The European Commission said Thursday that all Facebook users are "regularly exposed to Facebook Marketplace whether they want it or not."
The Commission also said that Meta imposed unfair trading conditions on other online classified providers that advertised on its platforms, particularly Facebook and Instagram.
The Commission ordered Meta to end its practices and not repeat them.
Meta said said it would appeal the ruling.
Margrethe Vestager, the commissioner in charge of competition policy, said in a statement that Meta had been fined for "abusing its dominant positions in the markets for personal social network services and for online display advertising on social media platforms."
Vestager said Meta's "conduct benefited Facebook Marketplace and gave it "advantages that other online classified ads service providers could not match."
"This is illegal under EU antitrust rules. Meta must now stop this behavior."
Meta said in a statement that the 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."
"The reality is that people use Facebook Marketplace because they want to, not because they have to."
The fine represents less than 1% of Meta's 2023 revenues of almost $135 billion.
Meta shares dipped 0.4% in premarket trading. The stock has soared almost two-thirds this year, leaving the WhatsApp owner with a market capitalization of around $1.5 trillion.