Press Release FROM THE EUROPEAN COMMISSION. November 13, 2024. Brussels

The European Commission has fined Meta €797.72 million for violating EU antitrust rules by linking its online classified ads service, Facebook Marketplace, to its personal social network Facebook and imposing unfair commercial conditions on other online classified ads service providers.

The infringement:

Meta is a US multinational technology company whose flagship product is its personal social network, Facebook. It also offers an online classified ads service called “Facebook Marketplace,” where users can buy and sell products.

The Commission’s investigation concluded that Meta is dominant in the personal social network market, which covers at least the European Economic Area (EEA), as well as in national online advertising markets for social networks.

In particular, the Commission concluded that Meta abused its dominant position in violation of Article 102 of the Treaty on the Functioning of the European Union (TFEU) by:

• Linking its online classified ads service, Facebook Marketplace, with its personal social network, Facebook, means that all Facebook users have automatic access and are regularly exposed to Facebook Marketplace, whether they want to or not. The Commission concluded that competitors of Facebook Marketplace could be excluded, as this link gives Facebook Marketplace a substantial distribution advantage that competitors cannot match.
• Unilaterally imposing unfair commercial conditions on other online classified ads service providers who advertise on Meta’s platforms, particularly on its popular social networks Facebook and Instagram. This allows Meta to use data related to ads generated by other advertisers for the exclusive benefit of Facebook Marketplace.

The Commission has ordered Meta to effectively end the conduct and refrain from repeating the infringement or adopting practices with an equivalent object or effect in the future.

The fine of €797.72 million has been set based on the Commission’s 2006 guidelines on fines.

To determine the amount of the fine, the Commission took into account the duration and severity of the infringement, as well as the turnover of Facebook Marketplace, to which the infringements refer and which, therefore, defines the basic amount of the fine. Additionally, the Commission considered Meta’s total turnover to ensure a sufficient deterrent effect for a company with such significant resources as Meta.

Grounds:

In June 2021, the Commission opened a formal procedure for possible anticompetitive conduct by Facebook. In December 2022, the Commission sent Meta a statement of objections, to which Meta responded in June 2023.

Article 102 of the TFEU and Article 54 of the EEA Agreement prohibit the abuse of a dominant position.

A dominant market position is not, in itself, illegal under EU antitrust rules. However, dominant companies have a special responsibility not to abuse their powerful position in the market by restricting competition, either in the market in which they are dominant or in separate markets.

Fines imposed on companies that violate EU antitrust rules are paid into the EU’s general budget. These revenues are not allocated to specific expenses, but the contributions from Member States to the EU budget for the following year are reduced accordingly. Therefore, fines contribute to financing the EU and reducing the burden on taxpayers.

More information on this case will be available under case number AT.40684 in the public case register on the Commission’s competition website, once confidentiality issues have been resolved.

Quotes:

“Today, we fine Meta €797.72 million for abusing its dominant position in the personal social network services and online advertising markets on social media platforms. Meta linked its online classified ads service, Facebook Marketplace, to its personal social network, Facebook, and imposed unfair commercial conditions on other online classified ads service providers. It did this to benefit its own Facebook Marketplace service, which gave it advantages that other online classified ads service providers could not match. This is illegal under EU antitrust rules. Meta must now end this conduct.”

Margrethe Vestager, Executive Vice President.ecutiva encargada de la Política de Competencia