The European Union has accused Facebook parent company Meta of breaching regulations by distorting competition in the online classified ads business.

The EU’s executive commission said it “takes issue” with the tech company tying its online classified ad business, Facebook Marketplace, to Facebook.

That means Facebook users automatically have access to Marketplace “whether they want it or not”, the European Commission said.

The commission, the 27-nation bloc’s top competition enforcer, said Meta also imposes unfair trading conditions on competing online classified ad companies that advertise their services on Facebook or Instagram.

Companies that breach EU competition rules can be hit with fines worth up to 10% of their annual global revenue.