By granting Facebook users computerized access to the Facebook Marketplace and profiting from “abusive practices,” the European Commission fined Meta almost €800 million on Thursday for breaking antitrust laws.
The €797.72 million ($ 840.24 million ) penalty follows a prolonged investigation, which concluded that Meta had abused its dominant market position and engaged in anti-competitive conduct.
What the European Commission claimed
The European Commission fined Meta for breaking EU antitrust laws by linking its Facebook Marketplace online marketplace to Facebook’s private social network and by imposing cruel trading standards on other online marketplace providers, according to the European Commission.
The American tech company was accused by the European Commission of misusing its market position by imposing unfavorable business conditions on rival online classified advertising services that were promoted on its platforms.
Facebook launched Marketplace in 2016, which expanded to various European countries the next time. According to the EU’s decision, Meta unjustly imposes Facebook Marketplace on Facebook users. But, Meta disputes this, stating that people have the choice to join with Marketplace, with some deciding not to.
According to the committee, Facebook Marketplace gained an unjust” substantial transmission benefit” over companies due to its inclusion with Twitter.
According to the statement,” All Facebook users are instantly able to access and be constantly exposed to the Facebook Marketplace, regardless of whether they choose to do so.”
Additionally, the commission claimed that Meta unfairly imposed limitations on Facebook and Instagram advertising from competing classified advertising services.
This made it possible for Meta to “use ads-related information generated by various advertisers solely for Facebook Marketplace’s gain,” it said.
What the organization said
Meta has stated that it will charm while working to implement a swift resolution that addresses the issues raised. It contested the decision, claiming that it ignored” the experiences of the expanding German market for online classified list services.”
” Facebook users can choose whether or not to engage with Marketplace, and many do n’t. Individuals actually use Facebook Marketplace because they want to, not because they must,” according to the business.
Meta highlighted that despite the Commission’s warning that Marketplace might be able to slow down the expansion of well-established online retailers in the Union, they failed to provide proof of true competitor harm.
Meta claimed to have implemented systems and handles to stop this from happening, but that it does not use marketers ‘ data for these purposes.
The Commission’s decision to impose regulations on a free and cutting-edge service created to meet consumer demand is disheartening, the company continued.
Following its allegations two years ago that Facebook Marketplace had unfair advantages as a result of its integration with Facebook’s major service, the European Commission made this claim.
In June 2021, the European Union launched official inquiries into Facebook’s probably anti-competitive behavior, followed by worries about Meta’s connection to its main social network’s classified advertising services.
Meta reported approximately$ 135 billion ( 125 billion euros ) in total revenue for the previous year.
