Meta Faces Possible $11.8 Billion Fine

The European Union on Monday issued Facebook parent company Meta (NASDAQ: META) a list of objections regarding its pairing of Facebook Marketplace with its personal social network. The European Commission found that Meta breached EU antitrust rules by twisting competition in the markets for online classified ads.

It also stated it was worried the move gives Facebook Marketplace a “substantial distribution advantage that competitors cannot match.”

Margrethe Vestager, the Commission’s vice president in charge of competition policy, commented that the bind of Facebook and Marketplace leaves users with “no choice but to have access to Facebook Marketplace.”

“Furthermore, we are concerned that Meta imposed unfair trading conditions, allowing it to use of data on competing online classified ad services,” Vestager said in a statement.

“If confirmed, Meta’s practices would be illegal under our competition rules.”

Meta made USD117.92 Billion in annual revenues in 2021, which could mean a penalty worth as much as USD11.8 Billion. This would be the most recent setback for Meta, which is facing backlash from investors amid its shift to the “metaverse,” as well as other factors. Furthermore, the company’s share price has plummeted more than 60% throughout the year.