The European Commission has fined Meta €797.72 million for breaching EU antitrust rules by tying its online classified ads service Facebook Marketplace to its personal social network Facebook and by imposing unfair trading conditions on other online classified ads service providers.

Margrethe Vestager, executive vice-president in charge of competition policy, said the Commission found that Meta abused its dominant positions in the markets for personal social networks and online display advertising on social media.

"In particular, the Commission found that Meta abused its dominant positions in breach of Article 102 of the Treaty on the Functioning of the European Union ('TFEU') by tying its online classified ads service Facebook Marketplace to its personal social network Facebook, and by unilaterally imposing unfair trading conditions on other online classified ads service providers who advertise on Meta's platforms," Vestager said.

The Commission argued that the tie-in of Facebook Marketplace gives it "a substantial distribution advantage which competitors cannot match." It also said Meta was using data generated by other advertisers to benefit its own Facebook Marketplace service.

In a statement, Meta said the decision "ignores the realities of the thriving European market for online classified listing services" and that it will appeal the fine.

"The real problem is that this case entirely distorts competition law. EU competition law is intended to protect the competitive process and consumers, not to preserve the established business positions of incumbent providers in the face of innovation," Meta said.

The fine of €797.72 million was set based on the Commission's 2006 guidelines, taking into account the duration and gravity of the infringement as well as Meta's total turnover to ensure sufficient deterrence.

The Commission opened formal proceedings into possible anticompetitive conduct of Facebook in June 2021 and sent Meta a Statement of Objections in December 2022, to which Meta responded in June 2023.

The case number is AT.40684 in the public case register on the Commission's competition website.

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