This European Commission company believes in Meta sequence Facebookthat it distorts competition in online classified markets and violates European rules on anti-competitive practices. This is the preliminary conclusion reached by services administered by Denmark. Margrethe Vestager accusing the internet giant of linking its online advertising service, Facebook Marketplaceits own social network Facebook and secondly, Meta’s ability to impose unfair trading terms on Facebook Marketplace competitors for its own benefit.
In a statement of objection sent this Monday, Brussels states that the company has abused its dominant position in the European market for personal social networks and national markets for online display advertising on social networks via forms. First, by automatically connecting the online advertising service Facebook Marketplace to Facebook, the social network Facebook users have automatic access whether they want it or not. “As the link gives Facebook a significant distribution advantage that its competitors cannot match, the Commission is concerned that competitors of the Facebook Marketplace may be excluded,” the Commission said.
Unilateral conditions
Second, the Community Manager denounces that Meta unilaterally imposes unfair commercial terms on competing online advertising services that advertise on Facebook or Instagram. “The commission is in line with terms that allow Meta to use competitors’ ad data for the benefit of Facebook Marketplace. unfair, disproportionate and unnecessary “For the provision of online display advertising services on meta-platforms,” he criticizes the Commission, which understands that these conditions place a burden on competitors and benefit the platform only for buying and selling Facebook products.
Submission of the statement of objection does not affect the outcome of the investigation initiated by Brussels in June 2021 and is a formal step in which the Commission notifies the objections in writing. If anticompetitive practices are confirmed, possible Sanction could reach up to 10% of global business volume There is no statutory time limit for the conclusion of the multinational Investigation and the time will depend on a variety of factors, such as the complexity of the case, the degree of cooperation of the companies involved with the Commission, and the exercise of defense rights.