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Business / Tech


EUROPE FINES META $840 MILLION OVER ‘ABUSIVE’ PRACTICES BENEFITING FACEBOOK
MARKETPLACE

By Reuters
2 minute read
Published 11:25 AM EST, Thu November 14, 2024
Link Copied!
Meta's headquarters in Menlo Park, California, seen in February 2023.
Justin Sullivan/Getty Images/File

The European Union has fined Meta Platforms €798 million ($840 million) over
what it called abusive practices benefiting Facebook Marketplace.

“The European Commission has fined Meta … for breaching EU antitrust rules by
tying its online classified ads service Facebook Marketplace to its personal
social network Facebook and by imposing unfair trading conditions on other
online classified ads service providers,” the EU’s executive arm said in a
statement.

Meta (META) said it will appeal the decision, but in the meantime, it will
comply and will work quickly and constructively to launch a solution that
addresses the points raised.

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The move by the European Commission comes two years after it accused the US tech
giant of giving its classified ads service Facebook Marketplace an unfair
advantage by bundling the two services together.

Meta's European headquarters in Dublin, Ireland, in February 2023.
Artur Widak/NurPhoto/Shutterstock

Related article Meta accused of breaking European law with its ‘pay or consent’
model

The European Union opened formal proceedings into possible anticompetitive
conduct of Facebook in June 2021, and in December 2022 raised concerns that Meta
ties its dominant social network Facebook to its online classified ad services.

Facebook launched Marketplace in 2016 and expanded into several European
countries a year later.

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The EU decision argues that Meta imposes Facebook Marketplace on people who use
Facebook in an illegal “tie” but Meta said that argument ignores the fact that
Facebook users can choose whether to engage with Marketplace, and many do not.

Meta said the European Commission claimed that Marketplace had the potential to
hinder the growth of large incumbent online marketplaces in the EU but could not
find any evidence of harm to competitors.

Companies risk fines of as much as 10% of their global turnover for EU antitrust
violations.


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