The European Commission sanctions Meta with a record fine of almost 800 million euros

Already in 2022, we were talking to you about it. The European Union and the European Commission sanctioned Meta's practices considered “abusive” with a fine of 797.72 million euros (or approximately $860 million). In its press release, the European Commission highlights two major infringements: “The Commission found that Facebook Marketplace's competitors risked being displaced, as the link gives Facebook Marketplace a substantial distribution advantage that competitors cannot match.” we can read. On the other hand, Brussels also mentions “unfair trading conditions“: Meta would thus impose conditions on service providers competing with Marketplace whose aim is to simply distribute advertisements on Facebook or Instagram. These same conditions would offer Meta the possibility of using this data (generated directly by the advertisements) for the benefit directly from Marketplace.

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Meta's response to the accusation and the fine formulated by the European Commission was not long in coming: Meta has already announced that it will appeal this decision, but will nevertheless have to comply with it in the meantime, and offer a solution to the concerns raised by the Commission. This did not prevent the firm from issuing its own press release: “The move ignores the realities of Europe's thriving market for online classifieds services and protects large incumbent companies from a new entrant, Facebook Marketplace, which meets consumer demand in an innovative and convenient way“.

Meta also indicates that Marketplace's direct competing platforms are growing (which suggests that the link between Facebook and Marketplace does not harm competition): “Services such as eBay, Leboncoin in France, Marktplaats in the Netherlands, Subito in Italy, Blocket in Sweden and Finn.no in Norway are formidable competitors and market leaders in many Member States. Since the launch of Facebook Marketplace, they have continued to achieve significant business success, including strong financial results and growth.“.