The European Union (EU) has fined Meta $840 million over allegations of unfair trading conditions and the 'abusive' advertising practices on its Facebook platform. The fine is the result of claims that Meta violated EU antitrust laws by automatically granting users of its Facebook social network access to Facebook Marketplace without their consent.
According to the EU, Meta's actions constitute a breach of antitrust regulations, as it imposed unfair conditions on other online classified ad services that advertise on Facebook and Instagram. These practices were designed to give Meta a competitive edge by unfairly benefiting from data generated by third-party advertisers, all to the advantage of Facebook Marketplace.
In a statement released on Thursday, EU competition chief Margrethe Vestager emphasized that Meta's approach was illegal under EU competition laws and demanded that the company cease this behavior immediately. The statement further noted that Facebook users were being regularly exposed to Facebook Marketplace whether they opted to use the platform or not, leading to an unfair advantage for Meta's marketplace over other classified ad services.
In response, Meta dismissed the EU's allegations, arguing that Facebook users have the option to engage with Facebook Marketplace or not, and that many users choose not to. The company reiterated that people use Facebook Marketplace because they want to, not because they are forced to, and expressed disappointment over the EU's regulatory actions. Meta also indicated that it plans to appeal the fine, stressing that the service is free and was created in response to consumer demand for an innovative platform.