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Brussels (AFP) – The European Commission considers, on a preliminary basis, that Meta has breached EU rules “by distorting competition in the online advertising markets,” the Community Executive said on Monday.
The European Union body, which opened an investigation in June 2021 against Facebook (now Meta), believes that the American technology company “abuses its dominant position.”
“Our preliminary concern lies in the fact that Meta links its dominant social network, Facebook, to its online advertising services called Facebook Marketplace,” explained the Commission’s Executive Vice President for Competition, Margrethe Vestager.
“This means that Facebook users have no choice but to access Facebook Marketplace,” adds the European Commissioner.
The Commission fears that Facebook Marketplace’s competitors will be “ousted” as Facebook Marketplace “gives Facebook a substantial distribution advantage that competitors cannot match”.
In its preliminary opinion, the Community Executive also considers that Meta “unilaterally imposes unfair commercial conditions on competing online advertising services that advertise on Facebook or Instagram.”
The Commission “fears that the general conditions, which authorize Meta to use advertising data from competitors for the benefit of Facebook Marketplace, are unjustified, disproportionate and not necessary for the provision of online advertising services on Meta platforms” .
The communication of these claims to Meta, which is a formal phase of the commission’s investigation into alleged antitrust behavior, “does not prejudge the matter of an investigation,” said the European Executive.
The Meta group can examine the documents in the file, respond in writing and request to appear in person to express their observations.
If after this phase the Commission concludes that there is an infringement, it can prohibit the behavior and impose a fine of up to 10% of the worldwide annual turnover of the company in question.
