The European Commission is examining whether Meta Platforms, the owner of Facebook, distorts competition in online classified markets and breaches European antitrust rules. The preliminary conclusions come from services in Denmark, with Margrethe Vestager asserting that Facebook Marketplace is connected to its Facebook social network in a way that could harm rivals. The concern is that Meta’s setup makes it harder for competing advertising services to flourish on its platforms, benefiting Meta itself.
In a formal objection issued this week, Brussels argues that Meta has abused its dominant position in the European social-network market and in the online display advertising space on social networks. The Commission notes that Facebook Marketplace is automatically linked to Facebook, giving users unintended access to the marketplace. This linkage could provide Meta with a broad distribution advantage that competitors cannot match, raising the risk that Facebook Marketplace rivals will be edged out.
Unilateral terms
The Community Manager also highlights that Meta imposes unfair commercial terms on competing online advertising services that run ads on Facebook or Instagram. The Commission argues that Meta could leverage data from rivals’ ads for the benefit of Facebook Marketplace, describing the terms as unfair, disproportionate, and unnecessary for providing display advertising on Meta platforms. These terms, if upheld, would tilt the playing field in favor of Meta’s own buying and selling activities.
Submitting the statement of objection does not determine the case’s outcome. It marks a formal step in the ongoing investigation that began in June 2021, signaling the Commission’s intent to give a written notice of the objections. If anti-competitive practices are confirmed, penalties could reach as high as ten percent of the company’s global turnover. There is no fixed deadline for the investigation’s conclusion, as factors such as case complexity, the level of cooperation from involved companies, and defense rights influence the timeline.