"The European Commission has informed Meta of its preliminary view that the company breached EU antitrust rules by distorting competition in the markets for online classified ads," a statement read.
The EU authorities have tentatively found that Meta abuses its dominant position in two ways. First, the firm links its Facebook Marketplace advertising service to its dominant social network, Facebook. This means that Facebook users automatically get access to the Facebook Marketplace, whether they want it or not — the fact that may give the company a significant competitive advantage, the European Commission said.
Second, Meta unilaterally imposes unfair trading conditions on competing online services advertising on Facebook* or Instagram*, according to the statement.
The European Commission said that the conditions which allow Meta to use ad-related data from rivals for the benefit of the Facebook Marketplace are "unjustified and disproportionate."
"If the Commission concludes, after the company has exercised its rights of defence, that there is sufficient evidence of an infringement, it can adopt a decision prohibiting the conduct and imposing a fine of up to 10% of the company's annual worldwide turnover," the statement read.
The duration of the EU's investigation into possible antitrust violations by Meta is yet unknown and will depend on a number of factors, including the complexity of the case and the extent of the undertakings' cooperation with the European Commission.
*Meta (Facebook and Instagram) is banned as an extremist organization in Russia.