Webp ykvzu0zx2rzh8x6syd12wctpuz1m
Chris Cox Chief Product Officer | Meta

Meta appeals EU ruling against Facebook Marketplace

ORGANIZATIONS IN THIS STORY

The European Commission has announced a decision asserting that Facebook Marketplace has hindered competition among online marketplaces in Europe. Meta, the parent company of Facebook, plans to appeal this decision, arguing that it does not reflect the realities of the market and unfairly protects established companies from new entrants like Facebook Marketplace.

According to Meta, "this decision ignores the realities of the thriving European market for online classified listing services and shields large incumbent companies from a new entrant, Facebook Marketplace, that meets consumer demand in innovative and convenient new ways." The company emphasizes its commitment to ensuring consumers are well served in the EU.

Facebook Marketplace was launched globally in 2016 after users had already created over 400,000 groups focused on buying and selling items on Facebook within the European Economic Area. Meta highlights that "we built Facebook Marketplace in 2016 to provide a more convenient and easy-to-use way for people to discover, buy, and sell items at no charge."

The European Commission's decision claims that Meta imposes Facebook Marketplace on its users through an illegal tie-in. However, Meta counters this by stating that users engage with Marketplace voluntarily: "The reality is that people use Facebook Marketplace because they want to, not because they have to."

Another point raised by the Commission is the potential misuse of advertising data from rival marketplaces. Meta denies these allegations: "But we don’t use advertisers’ data for this purpose and we have already built systems and controls to ensure that."

Meta argues that despite extensive investigation, there is no evidence of harm caused by Facebook Marketplace. Instead, existing platforms such as eBay and others continue to thrive alongside new entrants like Vinted. According to Meta, "those very marketplaces are actually continuing to grow and dominate in the EU."

Meta criticizes what it sees as a distortion of competition law by the European Commission: "Ironically, in the name of competition, this decision does just that at huge cost to consumers." The company plans to comply with regulations while working on solutions addressing concerns raised by the Commission.

ORGANIZATIONS IN THIS STORY