EU fines Meta $840m for ‘abusive’ Facebook ad practices

Saturday, November 16, 2024 - The European Union has fined Meta nearly €800 million for violating antitrust laws by automatically granting Facebook users access to its classified ads service, Facebook Marketplace. The European Commission accused Meta of abusing its dominant position by imposing unfair trading conditions on rival classified ad providers who advertise on its platforms.

“This is illegal under EU antitrust rules. Meta must now stop this behaviour,” said Margrethe Vestager, the EU's competition commissioner, in a statement.

Meta announced plans to appeal the decision, arguing it misrepresents the competitive environment in Europe. “Facebook users can choose whether or not to engage with Marketplace, and many don’t. The reality is that people use Facebook Marketplace because they want to, not because they have to,” Meta said.

This penalty ranks among the 10 largest antitrust fines ever imposed by the EU and follows a series of actions against Big Tech companies. The Commission emphasized that Facebook Marketplace's integration with Facebook gives it a significant advantage over competitors, stating that all Facebook users automatically access and are exposed to the service regardless of their preference.

The Commission also accused Meta of imposing unfair conditions on competitors in the classified ads sector. It alleged Meta leveraged ad-related data from other advertisers for the exclusive benefit of Facebook Marketplace, a claim Meta denies. Meta said it has "built systems and controls" to prevent such practices, calling the Commission’s actions against its free service "disappointing."

The fine of €797.72 million reflects what the Commission described as the "duration and gravity" of the violations. Meta’s revenue last year was approximately $135 billion.

This decision is part of the EU’s broader regulatory push against Big Tech, backed by new legislation like the Digital Services Act and Digital Markets Act. Earlier this year, the EU accused Meta of breaching digital rules with a "pay or consent" system requiring users to either pay to avoid data collection or agree to share their data. In response to regulatory pressure, Meta recently introduced less targeted ads for free users in the EU and lowered subscription rates for ad-free services.