EU accuses Meta of abuse of power in Marketplace, threatens with billions of fines

The European Commission accuses Meta of violating European antitrust laws with the Facebook Marketplace. Competition would be hindered by linking the trading platform to Facebook and using user conditions that are anti-competitive.

By doing so, Meta would specifically violate Article 102 of the Treaty on the Functioning of the European Union, according to the provisional conclusion of the European Commission. A fine of up to 10 percent of the annual worldwide turnover can be given for this, which in the case of Meta can result in a fine of more than 11 billion euros. It company calls the allegations unfounded and claims to create favorable conditions for both consumers and competitors.

The European Commission claims that Meta violates the relevant law on two counts. On the one hand, Meta would take advantage of Facebook’s popularity to offer the standalone service Marketplace to all Facebook users unsolicited. This would be unfair to competing online marketplaces and other ‘online advertising services’.

In addition, the executive body of the EU states that other advertising platforms that advertise via Marketplace, Facebook or Instagram, for example, are disadvantaged by Meta’s terms of use. These terms state bluntly that Meta may use competitor advertising-related information for its own gain through the Marketplace. The Commission writes: “[De gebruikersvoorwaarden] are illegal, excessive and not necessary for the operation of online advertising services through Meta’s platforms. Such terms are a barrier to competitors and only benefit Facebook Marketplace.”

For the time being, this is a preliminary conclusion from the European Commission, which says there is ‘no legal deadline for completing an antitrust investigation’. Therefore, it is not clear how long, if any, Meta has to adapt its practices to comply with European Union requirements.