EU Smacks Meta With $840M Fine Alleging Abusive Practices To Prop Up Facebook

Meta is being slapped with an $840 million fine by the European Commission after finding that the company had violated antitrust rules and is in breach of Article 102 of the Treaty on the Functioning of the European Union. These findings stem from proceedings the Commission opened back in 2021, as it investigated whether or not Meta was abusing its market position to hinder any possible competitors when the company rolled out Facebook Marketplace.

The first key finding is that Meta used Facebook’s social network to bolster Facebook Marketplace in a way that other competitors couldn't match. The integration of these two products “means that all Facebook users automatically have access and get regularly exposed to Facebook Marketplace whether they want it or not.” While this was a logical move on Meta’s part, it certainly gave it a sizeable edge against other companies in the space, an edge the Commission was seemingly unable to look past.

The second finding relates to what the Commission is referring to as “imposing unfair trading conditions.” Due to Facebook’s size, it’s a popular platform for companies to buy ad space for products and services. However, this appears to be a double-edged sword, as the Commission claims that Meta is able “to use ads-related data generated by other advertisers for the sole benefit of Facebook Marketplace.” This type of behavior certainly puts Meta in an advantageous position.

The size of the fine is determined by “the duration and gravity of the infringement, as well as the turnover of Facebook Marketplace to which the infringements relate.” It’s calculated this way as a means of ensuring that companies the size of Meta take the fine seriously rather than seeing them as a slap on the wrist.

Meta will appeal the decision to try and minimize the amount of money it has to pay up. Although it will be interesting to see what changes the company makes to come into compliance with the Commission.