The European Union has slapped Meta with a hefty fine of nearly 800 million euros for engaging in what it has labeled “abusive practices” concerning its Facebook Marketplace classified ads platform.

On 14 November, the European Commission imposed a fine of 797.72 million euros (846.13 million dollars) on Meta, accusing the company of using its market dominance to give Facebook Marketplace an unfair advantage over competing classified ad services. According to the Commission, Meta’s actions were designed to benefit its own ad service by automatically linking Facebook Marketplace to its social media platform. As a result, all Facebook users are exposed to the Marketplace, regardless of whether they want to use it, giving it a significant distribution edge.

The Commission further alleged that Meta placed undue conditions on other classified ad providers advertising on Facebook and Instagram, allowing the company to exploit data generated by those advertisers for the sole benefit of Facebook Marketplace. According to the EU, this gave Meta an unfair competitive advantage in the marketplace.

In response, Meta argued that it did not use advertiser data in the way the Commission claims and insisted that it has implemented controls to prevent such misuse. Meta expressed its disappointment with the fine, stating that Facebook Marketplace is a free and innovative service built to meet consumer demand. While agreeing to comply with the Commission’s order to cease the alleged practices, Meta also indicated its intention to appeal the decision.

The fine marks the latest in a series of significant penalties imposed by the European Commission on major technology companies for breaching antitrust rules. This penalty ranks among the EU’s top ten largest antitrust fines. The Commission’s decision took into account the duration and severity of the infringement, as well as Meta’s significant market presence, with the company generating approximately 125 billion euros (133 billion dollars) in revenue last year.

The EU emphasized that Meta’s dominant position in the personal social network market comes with the responsibility not to restrict competition unfairly.