The commission said that by embedding Marketplace into its social network, Meta had imposed “unfair trading conditions” on other classified ad service providers.
Meta is the owner of Facebook, which offers online classified ads service Facebook Marketplace, where users can buy and sell goods.
The commission’s investigation found that Meta is dominant in the market for personal social networks, which is at least European Economic Area (EEA)-wide, as well as in the national markets for online display advertising on social media.
The commission found that Meta abused its dominant positions in breach of Article 102 of the Treaty on the Functioning of the European Union (TFEU). It said it did this 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 the tie gives Facebook Marketplace a substantial distribution advantage, which competitors cannot match.
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The commission also found that Meta imposed unfair trading conditions on other online classified ads service providers who advertise on Meta’s platforms such as Facebook and Instagram. This allows Meta to use ads-related data generated by other advertisers for the sole benefit of Facebook Marketplace.
The commission ordered Meta “to bring the conduct effectively to an end”, and to refrain from repeating the infringement or from adopting practices with an equivalent effect in the future.
Meta ‘imposed unfair trading conditions’
Market dominance is, as such, not illegal under EU antitrust rules. However, the commission said dominant companies have a “special responsibility” not to abuse their powerful market position by restricting competition, either in the market where they are dominant or in separate markets.
Fines imposed on companies found in breach of EU antitrust rules are paid into the general EU budget.
Margrethe Vestager, executive vice-president at the European Commission, said: “Today, we fine Meta €797.72m for abusing its dominant positions in the markets for personal social network services and for online display advertising on social media platforms.
“Meta tied its online classified ads service Facebook Marketplace to its personal social network Facebook and imposed unfair trading conditions on other online classified ads service providers.
“It did so to benefit its own service Facebook Marketplace, thereby giving it advantages that other online classified ads service providers could not match. This is illegal under EU antitrust rules. Meta must now stop this behaviour.”
