The European Union has fined Meta nearly 800 million euros for violating antitrust rules by giving Facebook users automatic access to its classified ads service, Facebook Marketplace, and for abusing its dominant position in the market.

The European Commission announced the fine on Thursday, stating that Meta had unfairly benefited from its dominant position by tying Facebook Marketplace to its main social network, making it available to all Facebook users by default. According to the EU, this gave Marketplace a "substantial distribution advantage" that competitors could not match. Users of Facebook were regularly exposed to Marketplace, whether they wanted to or not, the Commission said.

Meta was also accused of imposing unfair conditions on other online classified ad providers who advertised on Facebook and Instagram. The Commission argued that Meta used ads-related data from these competitors for its own benefit, helping Facebook Marketplace gain an advantage.

“This is illegal under EU antitrust rules. Meta must now stop this behaviour,” said Margrethe Vestager, the European Commissioner for Competition, in a statement.

In response, Meta said it would appeal the decision. The company argued that the Commission had misunderstood the situation, claiming that users could choose whether or not to engage with Marketplace and that many simply chose not to. Meta also emphasised that people use Facebook Marketplace because they want to, not because they have to.

“Facebook users can choose whether or not to engage with Marketplace, and many don’t. The reality is that people use Facebook Marketplace because they want to, not because they have to,” Meta said in a statement.

The fine, totalling €797.72 million (approximately $840 million), is one of the largest penalties ever imposed by the EU, and it highlights the ongoing scrutiny Big Tech companies face under European competition laws. The fine takes into account both the severity and duration of the breach, as well as Meta’s financial position. Meta's total revenue for 2023 was around $135 billion.

The case began in June 2021 when the European Commission launched formal investigations into Facebook’s business practices. The Commission raised concerns about Meta’s control over the market for personal social networks and how this might restrict competition. After months of investigation, the Commission concluded that Meta had violated EU antitrust rules, leading to the fine.

This latest penalty is part of a broader crackdown by the European Union on large technology companies. The EU has strengthened its regulatory powers in recent years with the introduction of the Digital Services Act and Digital Markets Act, which carry heavy financial penalties for infringements.

Earlier this year, the EU also accused Meta of breaching new digital rules related to its "pay or consent" system, which forced users to either pay to avoid data collection or agree to share their data in exchange for free use of the platform. In response to growing pressure, Meta announced earlier this week that it would give non-paying users in the EU the option to receive less targeted advertising, and it also planned to cut subscription rates for an entirely ad-free experience.

The EU's decision to fine Meta for antitrust violations further underscores the increasing regulation of the tech industry in Europe, as authorities continue to challenge Big Tech's market dominance and practices that could harm competition.