META has been fined a whooping €797.72 million (approximately $840 million) by the European Commission for violating EC antitrust laws.
For those who may not know, antitrust laws are laws which aim to ensure businesses compete fairly, protect consumers from unfair pricing or limited choices, and foster innovation.
As we all know, META owns Facebook, and Facebook has a classified ads service called Facebook Marketplace, where people post classifieds, primarily like a market, where you can buy and sell goods.
Now, the EC is accusing META for abusing it’s dominant position in the personal Social Media market as well as national markets for online display advertising on social media.
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This whole saga began in June of 2021 when the European Commission opened formal proceedings into possible anticompetitive conduct of Facebook.
In December 2022, the Commission sent Meta a Statement of Objections, to which Meta responded in June 2023.
Now, the EC is essentially saying that;
- Facebook users automatically have access and get regularly exposed to Facebook Marketplace whether they want it or not. This the EC calls TYING. They claim the tie gives Facebook Marketplace a substantial distribution advantage which competitors cannot match.
- Unilaterally imposing unfair trading conditions on other online classified ads service providers who advertise on Meta’s platforms.
Margrethe Vestager, The EC’s Executive Vice-President in charge of competition policy, who has been in charge of this since 2021, made a post on X, about the fine.
META is now required to pay over $840 million, highlighting the EU’s stringent approach to market competition. The company has announced its intention to challenge the decision.
It argues that the EU overlooks the fact that users have the choice to engage with or ignore Marketplace.
Despite the EU’s concerns about Marketplace stifling competition, Meta asserts that no concrete evidence of harm to competitors was found.
