The European Commission, (EU), yesterday fined online giant, Meta almost 800 million Euros for breaching anti-trust rules by giving users of its Facebook social network automatic access to classified ads service, Facebook Marketplace.
According to the EU, the US tech titan also abused its dominant position by imposing unfair trading conditions on other online classified ads service providers that advertise on its platforms.
In an issued statement, the blocs Competition Chief, Margrethe Vestager said, This is illegal under EU antitrust rules. Meta must now stop this behaviour.
Meta said it would appeal, alleging the decision ignored the realities of the thriving European market for online classified listing services.
Facebook users can choose whether or not to engage with Marketplace, and many dont. The reality is that people use Facebook Marketplace because they want to, not because they have to, the firm said, in a statement.
Among the 10 largest antitrust fines ever imposed by the 27-nation European Union, it is the latest in a string of hefty penalties slapped on Big Tech companies in recent years by the Commission, the regulator for the bloc.
Detailing what it termed abusive practices by Meta, the Commission said that because Facebook Marketplace was tied to Facebook, the former enjoyed a substantial distribution advantage which competitors cannot match. All Facebook users automatically have access and get regularly exposed to Facebook Marketplace whether they want it or not, it stated.
Additionally Meta imposed unfair conditions on competitors in the classified ads service who advertised on Facebook and Instagram, the Commission said. This allowed it to use ads-related data generated by other advertisers for the sole benefit of Facebook Marketplace, it said.
Meta, which also owns WhatsApp and Instagram, however, contended it did not use advertisers data for this purpose and has built systems and controls to ensure that.
It is disappointing that the Commission has chosen to take regulatory action against a free and innovative service built to meet consumer demand, the company said.
Metas dominant position in the market for personal social networks comes with a special responsibility not to abuse it by restricting competition, according to the EU. Metas total revenue last year stood at around $135 billion.
The European Commission has had several run-ins with Meta as part of a broader clampdown on abusive Big Tech practices. Its policy arsenal has been beefed-up over the past two years, with major twin laws, the Digital Services Act and the Digital Markets Act, that carry massive financial penalties in the event of infringements.
