According to reports, the European Commission is set to impose a substantial fine on Facebook's parent company, Meta, in the coming weeks for violating antitrust laws, with a decision expected this fall.

It is reported that the first issue of concern for the European Commission is Meta's bundling of Marketplace with Facebook and not providing users with an option to opt out of the service. The European Commission argues that this automatic access gives Facebook Marketplace an unfair competitive advantage and abuses its dominant position in the online classified ads market.

The second issue involves how Meta handles Marketplace’s competitive model. Although competitors advertise on Meta's platform, Meta's terms of service still allow it to collect data from these advertising activities to enhance Marketplace's capabilities.

If these behaviors are confirmed, Meta would be in violation of Article 102 of the Treaty on the Functioning of the European Union (TFEU), which would represent the largest fine ever issued to a tech company by the EU. However, it is likely not the last for Meta, as the company is currently facing multiple investigations. The Digital Markets Act also stipulates that for repeated violations, this percentage could rise to 20%.

Insiders suggest that the fine could amount to as much as $13.4 billion, or 10% of the company's global revenue for 2023, though the actual fine imposed by the European Commission is usually well below this upper limit.

Additionally, the European Commission may also require Facebook to create a separate classified ads platform, allowing users to log directly into Facebook Marketplace without going through the social media platform.

The European Commission has declined to comment on this matter so far.

Meta has reiterated its previous statement, with spokesperson Matt Pollard saying, "The allegations put forward by the European Commission are baseless. We will continue to work constructively with regulators to demonstrate that our product innovations benefit consumers and competition."

So far, the decision is still in draft stage and is expected to be made around September or October, before EU antitrust chief Margrethe Vestager leaves her position in November, though the timing could be delayed.

Previously, EU regulators had already issued such warnings to Meta.

In December 2022, the European Commission issued a statement of objections against Meta's business practices, citing unfair trading terms and two practices deemed to violate antitrust rules.

In November last year, Meta attempted to introduce a new "pay or agree" subscription model on Facebook and Instagram in Europe—where users would either agree to data collection while using Meta’s apps for free or pay to avoid data sharing—in response to the EU’s antitrust investigation. However, this concession was rejected by EU enforcement authorities, although it was reportedly accepted by the UK's competition regulator.

On July 1 this year, the European Commission preliminarily ruled that Meta’s subscription service launched last year violated the EU’s Digital Markets Act by failing to offer a "less personalized but equivalent" platform and not ensuring user consent for data collection.