Meta Fined $840 Million in Europe for Boosting Marketplace Unfairly

The European Union issued a fine of approximately $840 million to Meta for breaching competition regulations related to its Facebook Marketplace. This penalization is part of ongoing efforts by regulators to curb tech giants' expansion into new sectors. According to European regulators, Meta unfairly bundled Marketplace into Facebook's main social network, leveraging its large user base. This move was seen as an abuse of dominance in online advertising by setting unfair terms for competing shopping services. Consequently, Meta is accused of collecting data to fortify Marketplace.

EU competition authorities have been active in restricting major tech companies from utilizing their dominant positions in one area to penetrate new markets. Similar accusations have been made against other tech giants for leveraging their primary products to boost peripheral services. Meta's connection of Marketplace with Facebook is viewed as creating unmatched advantages against other classifieds services, which is deemed illegal under EU antitrust regulations. 

Meta plans to appeal this decision, potentially leading to a protracted legal battle. The company argues that Marketplace was developed in response to consumer interests and does not stifle competition from other platforms such as eBay. Users on Facebook have the option of engaging with Marketplace voluntarily.

Meta is frequently in the crosshairs of regulatory efforts to limit the power of large tech firms both in Europe and the United States. It was previously fined a significant amount for data protection violations. Now, the U.S. is also challenging Meta with antitrust lawsuits.

The investigation into Facebook Marketplace commenced in 2019, and a settlement was reached in a similar case in the UK. However, the EU case did not conclude with an agreement.