Meta Opens Facebook Marketplace to Classified Ads Rivals in Bid to Comply with EU Antitrust Order
Meta Platforms, the parent company of Facebook, has announced that it will allow classified ad firms in Europe to place their listings on Facebook Marketplace, in an effort to comply with a landmark European Union antitrust order. The move is part of a renewed attempt to comply with the EU’s demands, which were accompanied by a €798 million (S$1.1 billion) fine.
New Programme to Allow Classified Ad Firms to Use Facebook Marketplace
The company stated that it will allow classified ad firms to pay to place their listings on Facebook Marketplace, with the cost based on the number of times a user clicks on a button within the listing. This new programme follows a pilot programme with eBay.
Meta Disagrees with EU’s Decision
Despite the changes, Meta continues to disagree with the European Commission’s decision last year, which saw the company punished for abusing its dominance. Meta’s CEO, Mark Zuckerberg, has previously called the EU antitrust fines "tantamount to a tariff regime".
EU Assessing Compliance
The Brussels-based commission is currently assessing whether Meta has fully complied with the decision. In November, the EU’s powerful competition arm ordered Meta to stop tying its classified-ads service to Facebook’s sprawling social media platform, as well as refrain from imposing unfair trading conditions on rival second-hand goods platforms.
Background on EU’s Antitrust Action
The penalty was one of the final acts of former EU competition chief Margrethe Vestager, who oversaw the levying of billions of euros in antitrust penalties against large American technology companies, including more than €8 billion in fines against Alphabet Inc.’s Google.
UK’s Competition and Markets Authority
The allegations against Facebook Marketplace were also examined by the UK’s Competition and Markets Authority, which decided to accept concessions from the company instead of pursuing their investigation further.
Conclusion
Meta’s decision to open Facebook Marketplace to classified ad rivals is a significant step towards complying with the EU’s antitrust order. However, the company’s disagreement with the EU’s decision and its characterization of the fines as "tantamount to a tariff regime" suggests that the issue is far from resolved.
FAQs
Q: What is Meta’s stance on the EU’s antitrust decision?
A: Meta disagrees with the EU’s decision and characterizes the fines as "tantamount to a tariff regime".
Q: What is the new programme on Facebook Marketplace?
A: The programme allows classified ad firms to pay to place their listings on Facebook Marketplace, with the cost based on the number of times a user clicks on a button within the listing.
Q: Is the EU assessing Meta’s compliance with the decision?
A: Yes, the Brussels-based commission is currently assessing whether Meta has fully complied with the decision.
Q: What is the background on the EU’s antitrust action against Meta?
A: The penalty was one of the final acts of former EU competition chief Margrethe Vestager, who oversaw the levying of billions of euros in antitrust penalties against large American technology companies.
