11:01 AM EST, 11/14/2024 (MT Newswires) -- (Updates to add more details in the second to seventh paragraphs.)

Meta Platforms ( META ) was fined 797.72 million euros ($842.1 million) by the European Commission for allegedly violating European Union antitrust rules by tying Facebook Marketplace to Facebook and by imposing trading conditions on other online classified ads service providers it deems unfair, the Commission said Wednesday.

Tying its online classified ads service to its social network means that all Facebook users get automatic access and are regularly exposed to Facebook Marketplace regardless of their preference on this setup, according to the Commission.

Facebook Marketplace thus has "a substantial distribution advantage which competitors cannot match," it said.

The Commission also said the trading conditions that Meta unilaterally imposed on other online classified ads service providers that use its platforms, including Instagram, allow it to use ads-related data generated by other advertisers "for the sole benefit of Facebook Marketplace."

The fine was based on the duration and gravity of the alleged infringement as well as Facebook Marketplace's turnover, the Commission said.

"Facebook users can choose whether or not to engage with Marketplace," Meta said in a Thursday statement. "We don't use advertisers' data [to compete against them] and we have already built systems and controls to ensure that."

Meta said it will appeal the Commission's decision but in the meantime, it will comply and provide a solution to address the issues raised by the regulator.

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