Meta fined 798 million euros by the European Commission for violating competition rules

The European Commission announced on Thursday, November 14, that it had imposed a fine of 798 million euros on Meta for having infringed competition rules by linking its online advertising service, Facebook Marketplace, to its social network Facebook.

Brussels believes that the American multinational has thus imposed “unfair trading conditions” to other online advertising service providers.

Meta immediately replied that he would « appel » of this decision which, according to the group, “ignores the realities of the European market”. He can in fact refer the matter to the European Union (EU) court and initiate legal proceedings likely to last for years, which does not exempt him from paying the fine.

This dispute is not the only one opposing Meta to the EU. The Californian group is also in question for its rules for using personal data for targeted advertising purposes, a case which could also earn it a heavy sanction.

The fine announced Thursday is the seventh largest ever imposed by the EU for anti-competitive practices (excluding cartels), in a ranking dominated by Google, Apple and Intel.

Google (Alphabet group) remains by far the most penalized, with more than 8 billion euros in fines in total for various breaches of competition. It still holds the prize for the largest European fine (4.1 billion) for having abused its dominant position with Android, its operating system for mobile phones.

“This practice is illegal”

Meta, which also owns WhatsApp and Instagram, “sought to give its Facebook Marketplace service advantages that other online advertising service providers could not match”declared the European Commissioner for Competition, Margrethe Vestager, in a press release.

“This practice is illegal. Meta must now stop this behavior”she demanded. The European executive, competition watchdog in the EU, opened a formal investigation on this subject in June 2021. It communicated its grievances in December 2022, giving Meta the opportunity to defend itself.

The Commission claims that Facebook abused its dominant position. “All Facebook users automatically have access to Facebook Marketplace and are regularly exposed to it, whether they want it or not”she explained. She felt that “Facebook Marketplace competitors risked being ousted” failing to be able to match this “substantial advantage”.

“We will appeal,” assures Meta

Brussels also notes that Meta has imposed “unilaterally” of the “unfair trading conditions” to other providers who advertise on Meta's platforms, “especially on its very popular social networks Facebook and Instagram”. “This allows Meta to use data generated by other advertisers for the sole benefit of Facebook Marketplace”believes the Commission.

“This decision ignores the realities of the thriving European market for online classifieds services and protects large, established businesses from the entry of a new competitor”affirms on the contrary Meta. “Facebook users can choose whether or not to use Marketplace and many don't”further assures the Californian group in a press release. He also emphasizes “do not use advertisers’ data” to compete with them.

“We will appeal. In the meantime, we will comply with the requirements and work quickly and constructively to implement a solution addressing the points raised”added Meta, asserting that the European Commission had not “found no evidence of harm” affecting its competitors.

At the beginning of July, Brussels paved the way for another big fine against Meta by ruling that it did not respect the rules on the use of personal data in the EU for targeted advertising.

To comply, the American group offered Facebook and Instagram users a paid subscription which allows them to avoid being targeted by advertising. On the other hand, if they wish to maintain a free service, they must agree to provide their data. This system (“pay or consent”) was judged by the Commission to be in breach of the digital services regulation, which came into force in March.