13th February 2025, Meta Platforms has announced a significant shift in its business strategy by allowing competing classified ad service providers to list their ads on Facebook Marketplace.
This decision follows a €797 million ($828 million) fine imposed by the European Union in November 2024 for antitrust violations, Reuters reported.
The European Commission determined that Meta had breached EU competition laws by unfairly favoring its own service, imposing restrictive trading conditions on rivals, and tying Facebook Marketplace to its social networking platform, Facebook. To address these regulatory concerns, Meta has introduced the “Facebook Marketplace Partner Program,” aimed at fostering a more competitive environment for classified ad service providers.
Under this program, third-party partners—specifically online classified ad service providers as defined by the European Commission’s ruling—can list consumer-to-consumer inventory on Facebook Marketplace. These listings will be displayed alongside those from Facebook users and other third-party providers.
Meta piloted the program in Germany, France, and the United States last month in collaboration with eBay. This move signals Meta’s attempt to comply with EU regulations while simultaneously contesting the fine in court.
Meta CEO Mark Zuckerberg has criticized EU regulations, arguing that such rulings disproportionately target U.S. companies in a manner akin to a tariff system. However, the implementation of the partner program suggests a strategic pivot toward compliance with European competition laws, despite the company’s ongoing legal challenge.
The European Commission is currently assessing whether Meta has fully complied with the November ruling. The outcome of this review will play a crucial role in shaping future regulatory interactions between major tech firms and the European Union.
Background on the EU Fine
On 14th November 2024, the European Commission fined Meta €797.72 million ($840.24 million) for breaching EU antitrust rules by bundling Facebook Marketplace with its social network and imposing unfair trading conditions on competing online classified ad service providers. The EU began investigating Meta’s practices in June 2021, raising formal concerns in December 2022.
While Meta has appealed the decision, it has agreed to comply in the meantime and implement changes to address the concerns raised. The European Commission’s ruling asserts that Meta’s integration of Marketplace with Facebook constituted an illegal “tie,” limiting competition. However, Meta contends that Facebook users can choose whether to engage with Marketplace and argues that the EU failed to demonstrate actual harm to competitors.
EU antitrust violations can result in fines of up to 10% of a company’s global turnover, underscoring the significance of regulatory scrutiny on tech giants.
