The logo of Meta Platforms' business group is seen in Brussels, Belgium December 6, 2022. (REUTERS File Photo)
Facebook parent company Meta is violating strict competition rules in the European Union in the online classified advertising market, the European Commission charged on Monday.
The commission's preliminary analysis takes exception to Meta linking the Facebook Marketplace service to Facebook, the company's social media platform.
Facebook users "automatically have access to Facebook Marketplace, whether they want it or not," causing competition distortions, the commission's statement said.
The U.S. technology company also imposed unfair trading terms for competitors in online classified services that advertise on Facebook and Instagram, it argued, allegedly falling foul of EU antitrust rules.
The EU's top competition watchdog believes these terms impose "a burden on competitors and only benefit Facebook Marketplace."
The U.S. company now has the right to respond to the accusations in writing or in an oral hearing.
If the commission ultimately decides Meta violated anti-trust rules, it could be fined 10% of its annual turnover.
Opening an investigation does not prejudge the outcome of a competition case and there is no legal deadline to bring the investigation to an end.
The competition watchdog also shuttered an investigation into Google and Meta for alleged breaches of EU competition rules related to an advertising deal.
The EU executive arm believed the agreement, dubbed "Jedi Blue," may have excluded rivals to Google in the online display advertising market.
The commission closed the investigation after evidence received from Google, Meta and other technology companies. A separate investigation into Google's alleged dominance in the advertising technology sector is ongoing.
