The European Commission has imposed a fine of €797.72 million (approximately $840.24 million) on Meta Platforms, the parent company of Facebook, over antitrust violations tied to its online classified ads service, Facebook Marketplace.
This fine comes in response to what EU regulators describe as Meta’s alleged unfair advantage in the classified ads market by linking Marketplace with its popular social media platform, Facebook.
According to the European Commission, Meta’s actions effectively forced users of Facebook to also engage with Facebook Marketplace, an arrangement described as an illegal “tie” under EU competition laws.
In allegedly making Marketplace accessible only through Facebook, Meta is accused of creating an uncompetitive environment for other classified ad platforms.
These platforms, as argued by EU regulators, face disadvantages due to the strong link between Facebook’s vast user base and Marketplace’s visibility within the same app.
This structure, the EU says, may suppress competition from both large and emerging classified ad providers across the region.
Meta has countered these claims, stating that Facebook users have a choice whether to use Marketplace and that the EU has not presented evidence proving actual harm to consumers or its competitors.
Meta plans to appeal the decision, maintaining that it believes the allegations overlook the optional nature of Marketplace for Facebook users, many of whom choose not to engage with it.
Meta also reiterated its will to cooperate with EU regulators, saying that, despite its intent to appeal, it will work quickly to implement any necessary changes to address the Commission’s concerns.
The investigation into Meta has been ongoing since June 2021, with formal charges filed in December 2022. Regulators specifically spoke about possible anti-competitive behaviour arising from how Facebook Marketplace’s visibility is structured within the larger Facebook platform.
Launched in 2016 and subsequently rolled out across several European markets, Facebook Marketplace competes with a range of online classified services.
