European Commission Suspects Meta of Abuse of Power Around Online Advertisements
The European Commission believes that the American internet group Meta, the parent company of Facebook, WhatsApp and Instagram, is abusing its power to market its advertising platform, Marketplace.
That is against European competition rules. This is only a preliminary finding and will be further investigated. Meta still has a chance to defend itself. But if this conclusion is confirmed, a billion-dollar fine is imminent for the American company.
Facebook automatically gives its billions of users access to Marketplace, where they can advertise their stuff or post classified ads. They get that access, whether they ask for it or not. The Commission believes this gives Marketplace a competitive advantage over sector peers such as eBay or Marktplaats.
In addition, Facebook would unilaterally impose unfair trading conditions on competitors who advertise on Facebook and Instagram. Meta would use their data for the benefit of its Marketplace. According to the Commission, this is ‘unjustified and disproportionate’. The European Commission opened an investigation against Facebook – now Meta – in June 2021. The final fine for abuse of a dominant market position can amount to 10 percent of global annual turnover.
In recent years, European regulators have regularly punished Microsoft, Amazon, Google, Apple and Meta for violating competition or privacy rules. For example, meta was fined hundreds of millions of euros for violations by her daughters Facebook and Instagram. The company itself is said to have already set aside billions for possible new fines.
