Meta is an American multinational technology company, best known for its flagship product, the personal social network Facebook. It also offers an online classifieds service called Facebook Marketplace, where users can buy and sell goods.
The Commission's investigation revealed that Meta holds a dominant position in the market for personal social networks, which encompasses at least the European Economic Area (EEA), as well as national markets for online advertising in social media.
Specifically, the Commission found that Meta abused its dominant position in violation of Article 102 of the Treaty on the Functioning of the European Union (TFEU). This was evident in the following actions:
- tying Facebook Marketplace to Facebook: Meta automatically provides all Facebook users access to its online classifieds service, Facebook Marketplace, regardless of their preference. This creates a significant advantage for Facebook Marketplace over its competitors, as it allows for broader advertisement distribution than competitors can achieve;
- unfair trading conditions: Meta imposed unilateral terms on other internet advertising providers who place their ads on its platforms, such as Facebook and Instagram. This enables Meta to utilize advertising data generated by third-party advertisers solely for its own benefit, particularly to strengthen the position of Facebook Marketplace.