European Union accuses Meta of breaching antitrust rules with classified ads

The European Union on Monday accused Meta, the parent company of Facebook, of breaking antitrust rules by distorting competition in online ads.

Meta, in response, disputed the European Commission's allegations that Facebook Marketplace, the platform's classified business, detracts from competitors because all users are automatically able to access the ads, the Associated Press reported. 

The commission, the top antitrust enforcer for the 27-nation bloc, also said Meta imposes unfair trading conditions on rival ads on Instagram or Facebook by using the data from the ads to benefit Marketplace.

"The claims made by the European Commission are without foundation," said European Facebook competition head Tim Lamb. "We will continue to work with regulatory authorities to demonstrate that our product innovation is pro-consumer and pro-competitive."

Meta can plead its case orally at hearing or in writing. If found to be breaching antitrust rules, the company can be slammed with a fine of up to 10% of its annual global revenue.