Meta Platforms vowed to appeal a European Commission (EC) fine of €798 million issued for breaching competition rules by linking its online classified advertising service to its Facebook social media platform, branding the decision as ignoring market realities.

In a strongly worded response to the regulator’s decision, the tech giant claimed the EC failed to provide any evidence of harm to rivals or consumers, asserting its social media users had the option not to use Facebook Marketplace.

“While the European Commission could not find any evidence of harm to competitors, they claim the entry and expansion of Facebook Marketplace has the potential to hinder the growth of large incumbent online marketplaces in the EU instead,” it claimed.

Listing commercially successful rivals active across several European Union markets, Meta Platforms claimed the EC’s move would “only serve to protect incumbent marketplaces from competition”.    

“The real problem is that this case entirely distorts competition law,” it added, noting regulations are “intended to protect the competitive process and consumers, not to preserve the established business positions of incumbent providers in the face of innovation”.

“Ironically, in the name of competition, this decision does just that at huge cost to consumers”.

Although appealing, Meta Platforms indicated it would comply with the decision in the meantime and “quickly work” on a solution to the points raised by the regulator.

Charge sheet
The comments came in the wake of the EC issuing the results of an investigation into Meta Platform’s policies relating to Facebook Marketplace, a formal proceeding commenced in 2021.

It found Meta Platforms imposed unfair trading conditions on other classified advertisement providers by tying the service to its social network.  

The EC noted “all Facebook users automatically have access and get regularly exposed to Facebook Marketplace whether they want it or not”, affording Meta Platform’s service “a substantial distribution advantage which competitors cannot match”.

It is also claimed to have imposed “unfair trading conditions on other online classified ads service providers who advertise on Meta’s platforms”.

Along with the fine, the decision requires the social media player to stop the policies deemed to be in breach of its rules.

EVP and European Commissioner in charge of competition policy Margrethe Vestager said “Meta tied its online classified ads service Facebook Marketplace to its personal social network Facebook and imposed unfair trading conditions on other online classified ads service providers”.