Meta has announced that European classified ads services will now be able to list their ads on Facebook Marketplace for a fee, calculated based on the number of user clicks. This decision comes in response to an EU antitrust ruling that led to a €798 million fine, Bloomberg reports. The move aims to address concerns raised by European regulators while allowing Meta to maintain its presence in the online classifieds sector.
Compliance with EU Antitrust Ruling
In November, the EU antitrust regulator ordered Meta to stop linking its classified ads service directly to Facebook and to refrain from imposing unfair trading conditions on competing second-hand goods platforms. The European Commission stated that it is currently assessing whether Meta has fully complied with these requirements.
Despite implementing the required changes, Meta continues to contest the ruling. The company restated CEO Mark Zuckerberg’s stance, arguing that the fines imposed by the EU are “the equivalent of a tariff regime.” Meta insists that its business practices do not harm competition and that the decision unfairly targets the company compared to other digital platforms operating in Europe.
Regulatory Actions in the EU and UK
The €798 million fine imposed on Meta was one of the final decisions made under Margrethe Vestager, the former head of the EU antitrust agency. Under her leadership, the European Commission took a strong stance against large U.S. tech firms, imposing multi-billion-euro penalties, including over €8 billion in fines on Google for antitrust violations.
Meanwhile, the UK’s Competition and Markets Authority (CMA) also investigated Facebook Marketplace. However, unlike the European Commission, the UK regulator chose to accept Meta’s proposed concessions and withdrew from further proceedings, notes NIX Solutions. This divergence in regulatory approaches highlights the varying levels of scrutiny faced by tech companies in different markets.
Meta’s decision to charge classified ads services for listings on Facebook Marketplace marks a notable shift in its business model within Europe. While the company has made adjustments to align with regulatory demands, its ongoing opposition to the ruling suggests that further legal challenges or policy changes could arise. We’ll keep you updated on any new developments in this case.