Meta to Appeal €797M Fine by EU Commission for Favoring Facebook Marketplace

Not only has Apple been fined by the European Commission for its dominant position, but Meta has also suffered the same fate, receiving a fine of €797.72 million. The company has been penalized for alleged abusive practices favoring its Facebook Marketplace. In response to the fine, Meta plans to appeal this decision to avoid paying the hefty amount, which was imposed by the European Commission for violating competition laws in Europe.

Meta’s Response

According to a statement published on Meta’s official blog, the company intends to appeal the fine. Meta argues that Facebook Marketplace does not hinder market competition within Europe. The company further elaborated that Facebook Marketplace was created in response to the high demand from users after observing more than 400,000 buying and selling groups on the platform. With this in mind, Marketplace aimed to provide a streamlined tool for users to engage in buying and selling.

Allegations Against Facebook Marketplace

The European Commission alleges that Facebook Marketplace is improperly linked to Facebook users, creating unfair advantages. Additionally, it has been accused of using data from other advertisers on Facebook to compete with them through Marketplace. However, Meta countered these claims, stating that there is no evidence to support such allegations.

The European Commission views Facebook Marketplace as a significant barrier to the growth of other large online marketplaces within the European Union. Despite this, Meta strongly disagrees with this assessment and has committed to appealing the decision.

While Meta works on addressing the Commission’s concerns, the company has assured users that Facebook Marketplace will not be discontinued. Instead, Meta is reviewing the outlined points and plans to adapt the platform accordingly to comply with European regulations.