Meta faces €797 million fine in Europe over abusive practices benefiting Facebook Marketplace

European Commission on Thursday fined Meta Platforms €797.72 million ($840.24 million) over abusive practices benefiting Facebook Marketplace, it said in a statement, confirming an earlier report by Reuters.

" European Commission has fined Meta ... for breaching EU antitrust rules by tying its online classified s service Facebook Marketplace to its personal social network Facebook and by imposing unfair tring conditions on or online classified s service providers," European Commission said.

Meta said it will appeal decision, but in meantime, it will comply and will work quickly and constructively to launch a solution which dresses points raised.

move by European Commission comes two years after it accused US tech giant of giving its classified s service Facebook Marketplace an unfair vantage by bundling two services toger.

European Union opened formal proceedings into possible anticompetitive conduct of Facebook in June, 2021, and in December, 2022, raised concerns that Meta ties its dominant social network Facebook to its online classified services.

Facebook launched Marketplace in 2016 and expanded into several European countries a year later.

EU decision argues that Meta imposes Facebook Marketplace on people who use Facebook in an illegal "tie" but Meta said that argument ignores fact that Facebook users can choose wher to engage with Marketplace, and many do not.

Meta said Commission claimed that Marketplace h potential to hinder growth of large incumbent online marketplaces in EU but could not find any evidence of harm to competitors. Companies risk fines of as much as 10 per cent of ir global turnover for EU antitrust violations.

In or news, Meta also faces scrutiny in US for alleged attempt to crush competition in market by acquiring Instagram and WhatsApp at overstated prices. Meta acquired Instagram for $1 billion in 2012, while acquisition of WhatsApp took place in 2014 at $19 billion.