The European Commission has imposed a hefty fine of €797.72 million on Meta for violating EU antitrust rules. The fine is a result of Meta's practice of tying its online classified ads service, Facebook Marketplace, to its personal social network, Facebook, and imposing unfair trading conditions on other online classified ads service providers.

The Commission's investigation is yet another in a series happening globally scrutinising the dominant position Meta holds in the market for personal social networks, and looked at both the European Economic Area ('EEA') and national markets for online display advertising on social media.

In particular, the Commission found Meta abused its dominant positions in breach of Article 102 of the Treaty on the Functioning of the European Union (‘TFEU') by firstly tying its online classified ads service Facebook Marketplace to its personal social network Facebook. This means all Facebook users automatically have access and get regularly exposed to Facebook Marketplace whether they want it or not. The Commission found competitors of Facebook Marketplace may be foreclosed as the tie gives Facebook Marketplace a substantial distribution advantage which competitors cannot match.

The second concern was unilaterally imposing unfair trading conditions on other online classified ads service providers who advertise on Meta's platforms, and on social networks Facebook and Instagram. This allows Meta to use ads-related data generated by other advertisers for the sole benefit of Facebook Marketplace.

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

"Today we fine Meta €797.72 million for abusing its dominant positions in the markets for personal social network services and for online display advertising on social media platforms. Meta tied its online classified ads service Facebook Marketplace to its personal social network Facebook and imposed unfair trading conditions on other online classified ads service providers. It did so to benefit its own service Facebook Marketplace, thereby giving it advantages that other online classified ads service providers could not match," said Margrethe Vestager, Executive Vice-President in charge of competition policy. "This is illegal under EU antitrust rules. Meta must now stop this behaviour."

The fine was calculated based on the Commission's 2006 guidelines on fines. 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 also considered Meta's total turnover, to ensure sufficient deterrence for a company with resources as significant as Meta's.

In June 2021, the Commission opened formal proceedings into possible anti-competitive conduct of Facebook. In December 2022, the Commission sent Meta a Statement of Objections, to which Meta responded in June 2023. Fines imposed on companies found in breach of EU antitrust rules are paid into the general EU budget.