EU slaps Meta with a nearly $1.2 billion fine for engaging in 'abusive' Marketplace practices
European Union regulators issued their first antitrust fine to Facebook parent Meta on Thursday with a penalty of nearly 800 million euros for what they call “abusive practices” involving its Marketplace online classified ads business.
The European Commission, the 27-nation bloc's executive branch and top antitrust enforcer, issued the 797.72 million euro (US$841 million) penalty after its long-running investigation found that the company abused its dominant position and engaged in anti-competitive behavior.
It’s the first time the EU has imposed a fine on the social media giant for breaches of the bloc’s competition law. Brussels has already slapped Big Tech rivals Google and Apple with billions in antitrust penalties.
The commission had accused Meta of distorting competition by tying its online classified ad business to its social network, automatically exposing Facebook users to Marketplace “whether they want it or not" and shutting out competitors.
It was also concerned that Meta was imposing unfair trading conditions with terms of service that authorized the company to use ad-related data — generated from competing classified ad platforms who advertise on Facebook or Instagram — to benefit Marketplace.
Meta's practices gave it “advantages that other online classified ads service providers could not match,” Margrethe Vestager, the commission's executive vice-president in charge of competition policy, said in a press release “This is illegal under EU antitrust rules. Meta must now stop this behaviour.”
Meta said in a statement that the decision fails to prove any “competitive harm” to rivals or consumers and “ignores the realities of the thriving European market for online classified listing services.”
The company said the Commission's case ignores the fact that Facebook users can choose to ”engage with Marketplace, and many don't." It said online marketplaces, including global sites like eBay, Europe-wide platforms like Vinted, and national services are continuing to grow.
Meta said it would comply with the Commission's order to end the offending conduct and not repeat it, but also vowed to appeal.
The case dates back to 2021, when European Union regulators and their counterparts in Britain opened dual investigations into the classified business. The British regulator wrapped up its investigation last year after Meta made concessions.
The company continues to face EU scrutiny on other fronts, including investigations into whether Facebook and Instagram child safety and election integrity measures comply with the bloc’s digital rulebook. Meta has previously been hit with a series of fines for breaches of the EU’s stringent privacy laws, including a record 1.2 billion euro penalty last year.
CTVNews.ca Top Stories
LIVE UPDATES Health insurance CEO's wife says threats received prior to fatal shooting
The masked gunman who stalked and killed UnitedHealthcare CEO Brian Thompson used ammunition emblazoned with the words 'deny,' 'defend' and 'depose,' a law enforcement official said Thursday. Here's the latest.
Man wanted for military desertion turns himself in at Canada-U.S. border
A man wanted for deserting the U.S. military 16 years ago was arrested at the border in Buffalo, N.Y. earlier this week.
'At the dawn of a third nuclear age,' senior U.K. commander warns
The head of Britain’s armed forces has warned that the world stands at the cusp of a 'third nuclear age,' defined by multiple simultaneous challenges and weakened safeguards that kept previous threats in check.
BREAKING B.C. officials monitoring tsunami threat after 7.0M earthquake off California
Emergency management officials in British Columbia say they are monitoring for any potential tsunami threats after a powerful 7.0-magnitude earthquake struck off California on Thursday morning.
AI modelling predicts these foods will be hit hardest by inflation next year
The new year won’t bring a resolution to rising food costs, according to a new report that predicts prices to rise as much as five per cent in 2025.
Alleged Alberta Bitcoin extortionist, arsonist arrested
Authorities have arrested Finbar Hughes, a man wanted in connection with alleged plots in Calgary and Edmonton that threatened to burn victims' homes if they did not pay him Bitcoin ransoms.
Earthquake strikes off California; tsunami warning issued
The U.S. National Weather Service has issued a tsunami warning for parts of California and Oregon after a 7.0 magnitude earthquake hit the U.S. Pacific coast on Thursday.
Pete Davidson, Jason Sudeikis and other former 'SNL' cast members reveal how little they got paid
Live from New York, it’s revelations about paydays on 'Saturday Night Live.'
Congo government says it's 'on alert' over mystery flu-like disease that killed dozens
Congo’s health minister said Thursday the government is on alert over a mystery flu-like disease that in recent weeks killed dozens of people.
Local Spotlight
N.S. woman finds endangered leatherback sea turtle washed up on Cape Breton beach
Mary Janet MacDonald has gone for walks on Port Hood Beach, N.S., most of her life, but in all those years, she had never seen anything like the discovery she made on Saturday: a leatherback sea turtle.
'It moved me': Person returns stolen Prada bag to Halifax store; owner donates proceeds
A Halifax store owner says a person returned a Prada bag after allegedly stealing it.
'It's all about tradition': Bushwakker marking 30 years of blackberry mead
The ancient art of meadmaking has become a holiday tradition for Regina's Bushwakker Brewpub, marking 30 years of its signature blackberry mead on Saturday.
Alberta photographer braves frigid storms to capture the beauty of Canadian winters
Most people want to stay indoors when temperatures drop to -30, but that’s the picture-perfect condition, literally, for Angela Boehm.
N.S. teacher, students help families in need at Christmas for more than 25 years
For more than a quarter-century, Lisa Roach's middle school students have been playing the role of Santa Claus to strangers during the holidays.
N.S. girl battling rare disease surprised with Taylor Swift-themed salon day
A Nova Scotia girl battling a rare disease recently had her 'Wildest Dreams' fulfilled when she was pampered with a Swiftie salon day.
Winnipeg city councillor a seven-time provincial arm wrestling champ
A Winnipeg city councillor doesn’t just have a strong grip on municipal politics.
Watch: Noisy throng of sea lions frolic near Jericho Beach
A large swarm of California sea lions have converged in the waters near Vancouver’s Jericho and Locarno beaches.
Auburn Bay residents brave the cold to hold Parade of Lights
It was pretty cold Saturday night, but the hearts of those in a southeast Calgary neighbourhood warmed right up during a big annual celebration.