Meta has been fined €797.72 million by the European Commission for violating EU antitrust rules. The fine is due to Meta's practices of tying its online classified ads service, Facebook Marketplace, to its social network, Facebook, and imposing unfair trading conditions on other online classified ads service providers.
The Infringement
- Dominance: Meta is dominant in the market for personal social networks and online display advertising on social media within the European Economic Area (EEA).
- Abuse of Dominance:
- Tying Facebook Marketplace to Facebook: All Facebook users automatically have access to Facebook Marketplace, giving it a substantial distribution advantage over competitors.
- Unfair Trading Conditions: Meta imposed unfair conditions on other online classified ads service providers who advertise on its platforms, using ads-related data for the benefit of Facebook Marketplace.
Fine Details
- Amount: €797.72 million, based on the Commission's 2006 guidelines on fines.
- Factors Considered: Duration and gravity of the infringement, turnover of Facebook Marketplace, and Meta's total turnover to ensure sufficient deterrence.
Background
- Investigation Timeline:
- June 2021: Commission opened formal proceedings.
- December 2022: Commission sent Meta a Statement of Objections.
- June 2023: Meta responded.
- Legal Basis: Article 102 of the Treaty on the Functioning of the European Union (TFEU) and Article 54 of the EEA Agreement prohibit the abuse of a dominant position.
- Market Dominance: Not illegal per se, but dominant companies must not restrict competition.
Financial Implications
- EU Budget: Fines are paid into the general EU budget, reducing Member States' contributions for the following year and easing the burden on taxpayers.
Official Statement
Meta has been fined for abusing its dominant positions in personal social network services and online display advertising. The company must cease these practices immediately. More information will be available under case number AT.40684 on the Commission's competition website once confidentiality issues are resolved.
