Europe fines Meta 797 million euros for violating the law with Facebook Marketplace

The European Commission once again imposed a fine of one million dollars on Meta.. In this case, the punishment for individuals led by Mark Zuckerberg is to violate the antitrust laws of the European Union using Facebook Marketplace. This is part of a process that began in 2022, and since the middle of this year there have been rumors that punishment is on the way.

According to authorities, Meta imposed unfair business conditions on other online classifieds providers by tying Marketplace operations to Facebook, its flagship social network. Here’s Why Californians Will Face fine of 797.72 million euros.

The fact that Facebook Marketplace’s operation is tied to that of its platform of the same name gives it a distribution advantage that its competitors cannot match, according to an investigation by the European Commission. This is because Facebook users have automatic access to buying and selling options.

The resolution points out that this could mean eliminating competing services, although the story doesn’t end there. It is also mentioned that Meta can benefit from the information it receives from Facebook Marketplace competitors when they advertise on Instagram and Facebook, and that this will allow it to expand its dominance in this segment.

According to the European Commission, Meta’s actions in relation to Facebook Marketplace constitute violation of Article 102 of the Treaty on the Functioning of the European Unionwhich prohibits the abuse of a dominant position.

Europe wants Meta to change the way Facebook Marketplace works

In addition to a fine of almost 798 million euros, the European Commission ordered Meta put an end to your behavior regarding the operation of Facebook Marketplace and not repeat violations in the future. The official statement does not specify whether Mark Zuckerberg’s people are aiming to make the platform independent from Facebook, although signs point to yes.

Of course, the residents of Menlo Park did not sit idly by. The company published a response to the decision of the European authorities, where it stated that There is no evidence that the operation of Facebook Marketplace harms competitors or users..

Zuckerberg’s people claim the European Commission “ignored empirical evidence” because they believe they based their punishment on hypothetical potential harm to competition. Additionally, they indicated that their platform operates in an environment where there are competitors with significant market presence.

“While the European Commission could not find any evidence that competitors were harmed, it said the emergence and expansion of Facebook Marketplace could hamper the growth of large online marketplaces already existing in the EU. But the same markets continue to grow and dominate the EU. Platforms such as eBay, Leboncoin in France, Marktplaats in the Netherlands, Subito in Italy, Blocket in Sweden and Finn.no in Norway are serious competitors and market leaders in many EU member states continue to grow. have reported significant business success, including strong financial results and growth, since the launch of Facebook Marketplace. Successful new entrants such as Vinted have also emerged and continue to grow and prosper in Europe.”

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Regarding the connection between Facebook and Facebook Marketplace, Californians say it’s not illegal. Meta says those who use its online classifieds service do so because they want to, not because they are forced to do so. He also emphasizes that they do not use information from competitors’ advertising for their own purposes.

The corporation has already announced this. going to appeal the punishment European Commission. However, it has promised to comply with the authorities’ demands while the process continues. The platform has not yet provided details on what changes it will make to how Facebook Marketplace operates, but it has confirmed that it will continue to operate and that news on this will be announced soon.