[Know your rights!] [Online classified ads providers] The Commission sanctions the unfair trading conditions imposed by Meta on the online classified ads market.
The European Commission has fined Meta €797.72 million for tying its online classified ads service, Facebook Marketplace, to its personal social network Facebook, and for imposing unfair trading conditions on other online classified ads providers: solid grounds for a damages claim by any company that considers itself harmed.
The Commission found that Meta holds a dominant position in the market for personal social networks, covering at least the European Economic Area (EEA), and in national markets for online display advertising on social media, owing to:
- the tie between its online classified ads service Facebook Marketplace and its personal social network Facebook, which gives all Facebook users automatic access to Facebook Marketplace, at the risk of excluding Facebook Marketplace’s competitors;
- the unilateral imposition of unfair trading conditions on online classified ads providers advertising on Meta’s platforms.
The Commission’s decision is, to date, proof that the practices existed and were unlawful, which greatly helps any damages claims that companies harmed by such practices may consider bringing against Meta, ideally preceded by an attempt at settlement, as is generally recommended.
In this context, companies should assess their recoverable loss before taking any formal step. Alongside lawyers experienced in competition damages claims, the support of competition economists is highly recommended to quantify the recoverable loss.
Rive Gauche Avocats, partner of Qanlex, the leading civil-law litigation funder operating in Europe and Latin America.
Serving our clients in a personal, reasonable and innovative way – Emmanuel Tricot and Gaël Peyneau, founders of the firm.
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