The European Commission determines, on a preliminary basis, that Meta has infringed EU rules “by distorting competition in online advertising markets,” the EU executive said on Monday.
The Commission, which opened an investigation in June 2021 against Facebook, which has since become Meta, considers in its complaints sent to the American multinational that “it abused its dominant positions.”
“This means that Facebook users have no choice but to have access to Facebook Marketplace,” the commissioner added.
“Unfair trading conditions”
The Commission is concerned that Facebook Marketplace’s competitors will be “crowded out” as this link “gives Facebook a substantial distribution advantage that competitors cannot match.”
In its preliminary opinion, the Commission also finds that Meta “unilaterally imposes unfair trading conditions on competing online advertising services that advertise on Facebook or Instagram.”
“It is of concern that the terms and conditions that allow Meta to use competing advertising data for the benefit of Facebook Marketplace are unreasonable, disproportionate, and not necessary for the provision of online display advertising services on meta platforms.”
Penalty of 10% of the annual billing
The communication of these grievances to Meta, which represents a formal step in the investigations carried out by the Commission for alleged anti-competitive conduct, “does not prejudge the result of an investigation”, specifies the European Executive.
The Meta group, which includes Facebook, Instagram or WhatsApp, can review the documents on file, respond in writing and ask to be heard to express their observations. If after this step the Commission concludes that there has been a violation, it can prohibit the behavior in question and impose a fine of up to 10% of the annual worldwide turnover of the company in question.
Source: BFM TV
