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Meta Is Fined $840 Million in Europe for Boosting Marketplace Unfairly

Meta said it would appeal the decision by the European Union, which said the company had abused its dominance in social networking to strengthen its shopping and classified ads service.

European Union regulators said Meta had given itself an unfair advantage by bundling Marketplace into Facebook’s wider social network.Credit...Ian C. Bates for The New York Times

European Union regulators said Meta had given itself an unfair advantage by bundling Marketplace into Facebook’s wider social network.Credit...Ian C. Bates for The New York Times

​The European Union on Thursday fined Meta roughly $840 million for breaking competition laws with Facebook Marketplace, its shopping and classified ads platform, the latest action by regulators trying to limit the ability of tech giants to expand into new product areas.

In issuing the 800 million euro fine, European regulators said Meta had given itself an unfair advantage over rival services by bundling Marketplace into Facebook’s wider social network, providing it with immediate access to millions of potential users. They added that Meta had abused its dominance in online advertising to impose unfair business terms on rival shopping services, allowing it to collect data that could be used to strengthen Marketplace.

European regulators, led by Margrethe Vestager, the E.U. competition chief, have for years sought to limit the ability of tech companies to use their power in one area, like social networking, to gain a foothold in new markets such as shopping. Authorities in Europe have also accused Apple of using its dominance in smartphones to bolster music and payment services.

The fine against Meta is one of the final acts by Ms. Vestager before she steps down from the European Commission, the executive branch of the 27-nation bloc. After a decade steering competition policy and pushing for tougher regulation of the tech industry, her term is ending and she is slated to be replaced in the coming weeks by Teresa Ribera, a Spanish official.

In linking Marketplace to Facebook’s social network, the company gave itself “advantages that other online classified ads service providers could not match,” Ms. Vestager said in a statement. “This is illegal under E.U. antitrust rules. Meta must now stop this behavior.”

The company said it would appeal the decision, setting up a legal battle that could drag out for years. Meta said Marketplace, introduced in 2016, was created in response to consumer demand and had not hindered competition from companies such as eBay and Vinted.

On Marketplace, people buy, sell and trade items with others, including furniture, clothing, sports equipment, cars and home goods.

“Facebook users can choose whether or not to engage with Marketplace, and many don’t,” the company said in a statement. “The reality is that people use Facebook Marketplace because they want to, not because they have to.”

Meta has been a target of efforts on both sides of the Atlantic Ocean to crimp the power of the largest technology companies. Last year, the company was fined 1.2 billion euros, or about $1.26 billion, for violating regional data protection rules. In the United States, the company is being sued by the Federal Trade Commission for antitrust violations.

Whether the United States and Europe will stay aligned on tech regulation with President-elect Donald J. Trump returning to office is an open question. Some of his supporters, including Vice President-elect JD Vance, have raised concerns about the power of Silicon Valley firms like Meta and Google, while others have pushed for less regulation.

The European Union started the Marketplace investigation in 2019. In 2023, the company reached a settlement with British regulators on a similar case, but was unable to find an agreement with E.U. authorities.

Author: Editors Desk, Adam Satariano, Reporting from London

Source: N.Y Times

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