Meta Platforms has been fined €797.72 million (£663 million) by the European Commission over alleged anti-competitive practices involving Facebook Marketplace.

The European Union regulator ruled that Meta breached competition laws by linking its social network with Facebook Marketplace, giving it an unfair advantage over rival online classified services.

Margrethe Vestager, the European Commission’s executive vice-president for competition policy, stated that Meta’s actions provided the company “advantages that other online classified ads service providers could not match,” deeming it illegal under EU antitrust regulations. “Meta must now stop this behaviour,” Vestager said.

Meta has announced plans to appeal the decision. The company, which also owns Instagram and WhatsApp, claimed the ruling fails to prove “competitive harm” to its rivals or consumers and “ignores the realities of the thriving European market for online classified listing services.” Meta argued that many Facebook users choose not to engage with Marketplace, highlighting that it remains an optional feature.

Facebook launched its Marketplace platform in 2016 and expanded it across Europe a year later. The European Commission initiated its investigation into Meta’s practices in 2021. Under EU antitrust rules, companies found in violation risk fines of up to 10% of their global revenue.

The ruling is part of an ongoing regulatory clampdown on Meta within the EU. Last year, the company faced a record €1.2 billion fine for breaching EU data privacy regulations. Ireland’s Data Protection Commission found that Meta failed to adequately protect European users’ data when transferring it to the United States, where it was exposed to surveillance by U.S. authorities. Meta’s European operations are headquartered in Dublin.

In the United States, Meta is also under scrutiny. The Federal Trade Commission has sued the company over its acquisitions of Instagram and WhatsApp, alleging they were intended to eliminate competition. Meta has defended these acquisitions, asserting they have “benefited competition and consumers alike.”

As the EU continues to tighten its grip on major technology firms, Meta has delayed the release of its latest AI model in Europe, attributing the delay to “unpredictable” regulatory conditions. This latest antitrust fine underscores the European Union’s increasing resolve to regulate the market dominance of US-based tech giants.

Meanwhile, changes to the EU’s approach could be on the horizon as Margrethe Vestager, who has championed significant fines against US tech firms, prepares to step down as competition commissioner. She is expected to be succeeded by Teresa Ribera, Spain’s environment minister, who is anticipated to balance oversight of technology companies with support for European businesses.