Meta fined $1.3 billion over Facebook marketplace practices
The European Commission has fined Meta Platforms $1.3 billion for breaking EU antitrust rules.
The EU fined Meta $1.3B for linking Facebook Marketplace with its social network and creating unfair conditions for rivals. Meta plans to appeal the decision.
The European Commission has fined Meta Platforms $1.3 billion for breaking EU antitrust rules. The fine comes after Meta tied its Facebook Marketplace to its main social network, Facebook. The EU also accused Meta of being unfair to other online classified ad services.
The European Commission confirmed the news in a statement. It said Meta used unfair practices to give Facebook Marketplace an advantage over rivals. This decision comes two years after the EU started investigating Meta's practices.
Meta launched Facebook Marketplace in 2016. This feature lets people buy and sell items through Facebook. However, the EU says Meta forces users to access Marketplace if they are on Facebook. This practice is called "tying," and the EU says it is illegal.
The Commission also found that Meta imposed unfair conditions on other online ad platforms. These actions, the EU believes, could harm competition.
Meta’s Response
Meta has said it will appeal the decision. However, the company says it will follow the rules while it works on a solution. Meta argues that the EU’s claims are wrong.
The company said Facebook users do not have to use Marketplace if they don’t want to. Many people on Facebook never use the Marketplace feature at all. Meta also said the EU could not find proof that Facebook Marketplace hurt other companies.
The fine of €797.72 million ($1.3 billion) was based on Meta’s global income. Under EU rules, companies can be fined up to 10% of their worldwide revenue for antitrust violations.
The EU started looking into Meta’s practices in June 2021. In December 2022, the Commission said it was concerned about how Facebook tied its social network to Marketplace.
Now, the EU has decided that these actions break its competition laws. It also said Meta’s practices could slow down the growth of other online marketplaces.
Meta said it plans to fix the issues raised by the EU. The company said it will work quickly and constructively to address these points. At the same time, Meta will continue to fight the fine by appealing the decision.
