Meta Fights Back Against EU’s Massive $1.1 Billion CAD Fine

The European Commission has fined Meta €798 million ($1.1 billion CAD), claiming Facebook Marketplace stifled competition for online marketplaces in Europe.

Meta announced it would appeal the decision, saying it misrepresents the reality of Europe’s active market for online classified ads and protects larger companies from competition. Meta argues that Facebook Marketplace, launched in 2016, simply provides a free, easy-to-use option for people to buy and sell online—something users already did on Facebook through thousands of community groups.

The EU’s case hinges on allegations that Facebook Marketplace unfairly “ties” to Facebook, making it hard for users to avoid. Meta counters that Marketplace is optional, and users engage because they find it useful, not because it’s forced on them. Meta also denies using rival ad data from platforms that advertise on Facebook to boost Marketplace, noting it has controls in place to prevent that.

“Today we fine Meta €797.72 million for abusing its dominant positions in the markets for personal social network services and for online display advertising on social media platforms. Meta tied its online classified ads service Facebook Marketplace to its personal social network Facebook and imposed unfair trading conditions on other online classified ads service providers,” said Margrethe Vestager, Executive Vice-President in charge of competition policy, in a statement.

“It did so to benefit its own service Facebook Marketplace, thereby giving it advantages that other online classified ads service providers could not match. This is illegal under EU antitrust rules. Meta must now stop this behaviour,” added Vestager.

Meta says the Commission failed to show actual harm to competitors, pointing out that major platforms like eBay and regional players such as Leboncoin and Subito have thrived despite Marketplace’s growth. It argues the EU’s case rests on “hypothetical” harm rather than evidence of real market damage and that this enforcement misinterprets EU competition law.

While appealing the fine, Meta says it will comply with EU regulations and plans to make adjustments to address the Commission’s concerns, promising to keep Marketplace available for European users. “We aim to make announcements shortly to reassure our European users that Facebook Marketplace is here to stay,” said Meta.