The European Commission has fined Meta, the parent company of Facebook, €797.72 million for violating EU antitrust regulations by leveraging its dominant position in the social media market to promote Facebook Marketplace. This integration, according to the Commission, has stifled competition by automatically giving users access to Facebook Marketplace, limiting opportunities for competing classified ad services to compete effectively.
Facebook Marketplace, an embedded feature within Facebook’s social network, allows users to buy and sell items directly on the platform. However, the Commission argued that bundling the Marketplace within Facebook’s broader social network creates a substantial distribution advantage, effectively foreclosing competition in the online classifieds sector. The Commission stated, “Facebook users automatically have access and get regularly exposed to Facebook Marketplace whether they want it or not,” emphasizing that competitors struggle to match this reach.
In addition, the Commission found that Meta imposes "unfair trading conditions" on other online classified ads providers that operate on Facebook and Instagram. This includes using competitor-generated data—derived indirectly from user interactions on the platform—to benefit Facebook Marketplace. Such practices, according to the Commission, undermine the competitiveness of rival services, restricting their market share.
Meta has been given 60 days to comply with the ruling, during which it can propose solutions to disentangle Facebook Marketplace from its core social networking service. Any proposed solution must provide users with a genuine choice regarding Marketplace integration, according to EU officials.
Meta responded by announcing plans to contest the ruling, arguing that the marketplace environment has changed significantly since the EU’s 2021 probe. According to Meta, platforms like eBay, Leboncoin in France, Marktplaats in the Netherlands, Subito in Italy, Blocket in Sweden, and Finn.no in Norway represent strong competition, leading the market in many EU countries.
