European Commission finds Meta in breach of ‘EU antitrust rules'

The parent company of Facebook, Meta, has "breached EU antitrust rules" in the social network’s online classified section, stated the European Commission (EC) in its preliminary finding released on Monday.

"The Commission takes issue with Meta tying its online classified ads service, Facebook Marketplace, to its personal social network, Facebook," said the EC in its statement. "The Commission is also concerned that Meta is imposing unfair trading conditions on Facebook Marketplace's competitors for its own benefit,” it added.

In the past, the EC has faced several run-ins with tech companies, including Meta, over the company’s practices.

Add WION as a Preferred Source

ALSO READ| Meta’s targeted advertisements could face restrictions in the EU: Report

This year, the company’s policy arsenal was beefed up with EU legislation’s two new pieces, the Digital Markets Act and the Digital Services Act, that include huge financial penalties in case of infringement.

The acts will be brought into full force throughout 2023 and 2024. The announcement made by the EU on Monday was about Meta’s "suspected violations" of antitrust rules laid out by the EU and provides Meta with a chance to respond to the formal Statement of Objections of the commission.

The concerns raised emphasise on the way Facebook users are given automatic access by Meta to Facebook Marketplace "whether they want it or not".

The commission added that Facebook Marketplace competitors may face unfair disadvantages due to the link. It also raised concerns over unfair trading practices involved in Instagram and Facebook’s online classified ad services, which fall under the umbrella of Meta.

WATCH|Gravitas: Meta set to fire thousands of employees

The commission said that user terms mentioned on those platforms allow Meta to use competitors’ ads-related data for boosting Facebook Marketplace.

If the concerns raised by the EU are proven right and evidence of infringement is found, Meta may have to 10% of its global annual turnover as a fine.
On September 30, the worldwide revenue of Meta was $118 billion.

(With inputs from agencies)