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EU fines Meta €798 million over ads

The European Commission has fined Meta almost €798 million for breaching EU competition rules by tying its online classified-ads service Facebook Marketplace to its personal social network Facebook.

An investigation by the EU body also found that Meta had imposed unfair trading conditions on other providers of online classified-ads services, which allow users to buy and sell goods.

The commission found that Meta was dominant in the European market for personal social networks, as well as in the national markets for online display advertising on social media.

‘Distribution advantage’

It said that, by linking Facebook Marketplace to Facebook, all Facebook users automatically had access and were exposed to Facebook Marketplace, whether they wanted it or not. 

According to the commission, this could affect competitors, as the tie gives Facebook Marketplace “a substantial distribution advantage” that rivals cannot match.

The investigation also found that Meta unilaterally imposed unfair trading conditions on other online classified ads-service providers that advertised on its platforms.

“This allows Meta to use ads-related data generated by other advertisers for the sole benefit of Facebook Marketplace,” the EU body stated.

As well as the fine, the commission has ordered Meta to stop the practices, and not to repeat them in future.