EU Commission Slaps Meta With $840 Million Fine For Violation Of Antitrust Laws

Meta has said that the EU Commission did not offer any evidence of the social media group harming any competitors or consumers.

Meta stated that it would comply with the decision for now and would actively work toward developing a solution that effectively addresses the concerns raised.

Source : Unsplash/Dima Solomin

Meta has received a huge penalty of €797.7 million ($840.2 million) for the breach of European Union competition law. The EU Commission accused Meta of engaging in practices that were aimed at benefitting Facebook Marketplace. The Commission said, "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 Commission said that it took the duration and the gravity of the infringement along with Meta and Facebook's turnover into consideration while deciding the amount for the fine. EU Commission added that Facebook Marketplace enjoyed a "substantial distribution advantage which competitors cannot match" as a result of being tied to the social media platform.

It further said, "All Facebook users automatically have access and get regularly exposed to Facebook Marketplace whether they want it or not." 

As per the body, Meta imposed unfair conditions on competitors who opted to advertise on Facebook and Instagram which let them use ads-related data for the sole benefit of Facebook Marketplace. 

The fine follows two years after the Commission alleged that Meta had unfairly boosted its classified ads platform, Facebook Marketplace, by linking it to the Facebook social network. The European Union has initiated multiple investigations into potential "non-compliance" with its Digital Markets Act (DMA). In a related move last year, the EU imposed a €1.2 billion penalty on Meta for transferring user data from the EU to the United States.

Meta To Contest The Fine

Meta has said that the EU Commission did not offer any evidence of the social media group harming any competitors or consumers. It said that it will appeal against the decision.

Meta argued, "Facebook users can choose whether or not to engage with Marketplace, and many don't. The reality is that people use Facebook Marketplace because they want to, not because they have to. It is disappointing that the Commission has chosen to take regulatory action against a free and innovative service built to meet consumer demand."

Meta stated that it would comply with the decision for now and would actively work toward developing a solution that effectively addresses the concerns raised.