The European Commission has fined Meta €797.72 million 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.
In June 2021, the Commission opened formal proceedings into possible anti-competitive conduct of Facebook. In December 2022, the Commission sent Meta a Statement of Objections, to which Meta responded in June 2023.
The Commission’s investigation found that Meta is dominant in the market for personal social networks, both in the EEA and in the national markets for online display advertising on social media.
In particular, the Commission found that Meta abused its dominant positions in breach of Article 102 of the Treaty on the Functioning of the European Union by:
- Tying its online classified ads service Facebook Marketplace to its personal social network Facebook. This means that all Facebook users automatically have access and get regularly exposed to Facebook Marketplace whether they want it or not. The Commission found that competitors of Facebook Marketplace may be excluded as the tie gives Facebook Marketplace a substantial distribution advantage which competitors cannot match.
- Unilaterally imposing unfair trading conditions on other online classified ads service providers who advertise on Meta’s platforms, especially on its very popular social networks Facebook and Instagram. This allows Meta to use ads-related data generated by other advertisers for the sole benefit of Facebook Marketplace.
Therefore, the Commission has ordered Meta to bring the conduct effectively to an end, and to refrain from repeating the infringement or from adopting practices with an equivalent object or effect in the future.
The fine of €797.72 million was set based on the Commission’s 2006 guidelines on fines. In setting the level of the fine, the Commission took into account the duration and gravity of the infringement, as well as the turnover of Facebook Marketplace to which the infringements relate, and which therefore defines the basic amount of the fine. In addition, the Commission considered Meta’s total turnover, to ensure sufficient deterrence for a company with resources as significant as Meta’s.
