The European Commission continues its crusade against the infringements of the technological giants in the community space. This Thursday it was the turn of Facebook’s parent company, Meta, on whom the European Commission has imposed a fine of almost 800 million euros for failing to comply with antitrust regulations European. Specifically, for linking its online advertising service, Facebook Marketplace, with its social network, Facebook, which creates unfair commercial conditions for other online advertising platforms.
The Community Vice President, responsible for Competition, Margrethe Vestager, has clarified that “Meta linked its online advertising service, Facebook Marketplace, to its personal social network Facebook and imposed unfair commercial conditions on other online advertising providers. It did so to benefit its own Facebook Marketplace service, which gave it an advantage that other providers couldn’t match. The Danish company has pointed out that such practices are illegal and that ““Meta must now put an end to this conduct.”
The European Commission has detailed that the American multinational had abused its dominant position with respect to its competitors and imposed unfair commercial conditions on competing suppliers. The amount of 797.72 million euros takes into account duration and severity of the infringement and the turnover of Facebook Marketplace. In addition, Brussels considered the total turnover of Meta, to ensure that it has a deterrent effect.
The case dates back to June 2021, when the Community Executive opened an investigation into Meta, suspecting that used advertisers’ data to compete with them in markets such as online classified ads, which constitutes a violation of competition rules.
Added to this is that the technology giant Meta owns the social network Facebook, which in turn has an online advertising platform, Facebook Marketplace, where users can buy and sell products. As part of its investigation, Brussels has concluded that Facebook not only has a dominant position in the community space with its social network, but also with the advertising platform.
Thus, the Community Executive has pointed out that the technology giant has engaged in practices of abuse of a dominant position. Specifically, the European Commission points out that the company has linked its Marketplace to its social network, which implies that Facebook users have direct and regular access to their ad platform, whether they want it or not.
Consequently, Brussels has considered that a Facebook Marketplace advantage situation is created over other advertising platforms, which in turn represents abuse of a dominant position.
Furthermore, the European Commission points out that Meta imposes conditions unfair trade to other ad platforms that advertise on the platforms of the company, specifically on Facebook and Instagram. The situation also allows the technology giant to use advertising data obtained through third-party advertisers for the benefit of Facebook’s own Marketplace.
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