Meta received a fine of over $840 million on Wednesday for breaching the European Union’s antitrust rules as it relates to market domination after three years of legal proceedings.
The multinational company was penalized for tying its online classified ads service Facebook Marketplace to its personal social network Facebook according to the release.
The feature allows Meta to use data generated by other advertisers on Facebook and Instagram to attract customers on Facebook Marketplace.
“This decision ignores the realities of the thriving European market for online classified listing services and shields large incumbent companies from a new entrant, Facebook Marketplace, that meets consumer demand in innovative and convenient new ways,” Meta wrote in a blog post response. “We will appeal this decision to ensure that consumers are well served in the EU.”
The company claims there is no evidence of harm to other advertisers and cited the growth of eBay, Leboncoin in France, Marktplaats in the Netherlands, Subito in Italy, Blocket in Sweden and Finn.no in Norway as evidence of “formidable competitors.”
Despite Meta’s argument, the European Commission ordered Meta to end its conduct and to refrain from repeating similar advertising methods in the future after opening a formal investigation in 2021 followed by a Statement of Objections in 2022.
“In setting the level of the fine, the Commission took into account the duration and gravity of the infringement, as well as the turnover of Facebook Marketplace to which the infringements relate and which therefore defines the basic amount of the fine,” the Commission wrote.
“In addition, the Commission considered Meta’s total turnover, to ensure sufficient deterrence for a company with resources as significant as Meta’s,” it added.
Updated at 8:26 p.m. EST.
