Penalties in sight?
The European Commission considers on Monday, on a preliminary basis, that the Meta group has breached EU rules "by distorting competition in the online advertising markets".
After opening an investigation in June 2021 against Facebook (which has since become Meta), it considers in its grievances sent to the American multinational that the latter "abused its dominant positions".
"Our preliminary concern is that Meta is tying 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 have access to Facebook Marketplace," added the commissioner.
Beginning of a long process
The Commission is concerned that Facebook Marketplace competitors will be "crowded out" since this link "gives Facebook a substantial distribution advantage that competitors cannot match".
In its preliminary opinion, the Commission also considers that Meta "unilaterally imposes unfair commercial conditions on competing online advertising services that advertise on Facebook or Instagram".
It "concerns that the terms and conditions, which allow Meta to use advertising data from competitors for the benefit of Facebook Marketplace, are unjustified, disproportionate and not necessary for the provision of online display advertising services on the platforms of Meta”.
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The communication of these grievances to Meta, which is a formal step in the investigations carried out by the Commission into alleged anti-competitive behavior, “does not prejudge the outcome of an investigation”, specifies the European executive.
The Meta group may examine the documents in the file, respond in writing and ask to be heard to express its observations.
If after this step the Commission concludes that there has been an infringement, it can prohibit the behavior in question and impose a fine of up to 10% of the annual worldwide turnover of the company concerned.