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Rabat – The European Commission has slapped Meta, the tech giant behind Facebook, WhatsApp, and Instagram, has been hit with a €798 million fine, for violating competition rules.
The penalty stems from Meta’s practice of linking its online advertising platform, Facebook Marketplace, to its dominant social network, Facebook.
The European Commission, the EU’s antitrust watchdog, accused Meta of imposing unfair trading conditions on competing online advertising services.
“By tying Facebook Marketplace to the social network, Meta created an undue advantage that competitors cannot match,” said Margrethe Vestager, the EU’s Competition Commissioner, in a statement. “This practice is illegal under EU competition rules. Meta must cease this behavior immediately.”
Launched in 2016, Facebook Marketplace allows users to buy and sell items directly on the social media platform.
The Commission’s investigation, which began in June 2021, found that all Facebook users were automatically granted access to Marketplace, giving it a significant edge over competitors.
The Commission concluded this integration unfairly marginalized other online advertising services.
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In response, Meta announced plans to appeal the decision. The California-based company argued that the ruling misrepresents market dynamics.
“This decision ignores the realities of the European online classifieds market, which remains vibrant and competitive,” the company said in a statement. Meta also maintained that users are not obligated to use Marketplace, noting: “Many choose not to engage with it.”
The Commission also alleged that Meta exploited data generated by advertisers on its platforms, such as Facebook and Instagram, to benefit Facebook Marketplace.
Meta, however, firmly denied this claim, stating, “We do not use advertiser data to compete with them.”
This ruling is the latest in a series of legal challenges between Meta and the EU. The company faces additional scrutiny over its data collection practices, particularly for targeted advertising.
To address regulatory concerns, Meta has proposed introducing a paid subscription option for Facebook and Instagram users who wish to avoid targeted ads. However, this model has been criticized for potentially breaching the EU’s Digital Markets Act.
The €798 million fine marks one of the largest penalties imposed by the EU for anti-competitive behavior, though it falls short of record fines levied against Google and Apple.
