In response to the ruling, Meta has announced plans to appeal, arguing that there is 'no evidence' of harm to competitors or consumers stemming from its practices.

Following the announcement of the fine, Meta's shares saw a slight decline of 0.4% in premarket trading, although the company has experienced significant stock growth over the past year.

The European Commission has imposed a hefty fine of €797.72 million on Meta for breaching EU regulations regarding market dominance in the online classified ad sector, specifically through its Facebook Marketplace.

The Commission's investigation highlighted concerns that Meta used advertising data from competitors to gain an unfair advantage in its Marketplace.

This penalty is part of a broader trend of scrutiny by the EU on American tech giants, following a similar €1.8 billion fine against Apple for abusing its market position in the music streaming sector.

The Commission criticized Meta's practices as potentially excluding competitors from the marketplace, which violates the Treaty on the Functioning of the European Union.

The investigation into Meta's practices began in 2021, coinciding with a separate inquiry by British regulators, which concluded after Meta made concessions.

Facebook Marketplace, which launched in 2016 and expanded into various European countries in 2017, has been a focal point of these regulatory challenges.

The ruling reflects a global movement towards stricter regulations on major tech companies, with ongoing discussions in the U.S. about potential breakups of firms like Google.

To address regulatory pressures, Meta has recently reduced subscription costs for EU users who wish to avoid ads, while also introducing a new ad model that minimizes user data usage.

This case is one of many legal challenges facing Meta in Europe, including ongoing scrutiny over its data usage policies for targeted advertising.

Notably, the fine represents less than 1% of Meta's revenues for 2023, which totaled nearly €135 billion.