The European Commission has fined Meta, the parent company of Facebook, nearly €800 million for unlawfully tying its advertising service, Facebook Marketplace, to its well-known social network.
With Facebook and Instagram, Meta is the dominant player in the social networking market in Europe. However, the Commission argues that the US multinational is violating European competition rules.
Firstly, Facebook users are being directed to Facebook Marketplace, Meta’s online advertising service where products can be bought and sold, whether they want it or not.
This gives other advertising service providers a competitive disadvantage as they cannot automatically benefit from Facebook’s user base.
Secondly, Meta can utilise data generated by its competitors who advertise on Facebook and Instagram to benefit Facebook Marketplace.
The Commission deems this practice unacceptable, following an investigation that began in 2021.
The fine imposed on Meta amounts to exactly €797.72 million, which will go into the European budget.
It is now up to Meta to put an end to this illegal behaviour, according to European Commissioner for Competition, Margrethe Vestager.
