Europe fines Meta $840 million over ‘abusive' practices benefiting Facebook Marketplace

The European Union has imposed a significant fine of €798 million ($840 million) on a major tech company for what it described as abusive practices that favor its classified ads service. According to a statement, the tech company allegedly breached EU antitrust rules by linking its online classified ads platform to its personal social network and by setting unfair trading conditions for other classified ad providers.

The company has announced plans to appeal the decision while committing to cooperate and quickly address the issues raised. This decision follows a two-year investigation that began in mid-2021, focusing on potential anticompetitive behavior and concerns about the linkage of its dominant social network to its online ad services.

The decision argues that the company illegally ties users to its marketplace through its social platform, though the company maintains users have the choice to engage with its marketplace service. The EU highlighted that the marketplace could potentially hinder competitors' growth, although evidence of market harm was not substantiated. Companies found in violation of EU antitrust laws face fines that could reach up to 10% of their global revenue.