EU accuses Meta of abuse of power in Marketplace, threatens billions in fine – IT Pro – News

The European Commission accuses Meta of violating European antitrust laws with the Facebook Marketplace. Competition would be hampered by linking the trading platform to Facebook and using anti-competitive terms of use.

By doing so, Meta would specifically be in breach of Article 102 of the Treaty on the Functioning of the European Union, according to the provisional conclusion of the European Commission. For this, a fine of up to 10 percent of the annual worldwide turnover can be imposed, which in the case of Meta can result in a fine of over 11 billion euros. It business calls the allegations are unfounded and it purports to create favorable conditions for both consumers and competitors.

The European Commission claims that Meta violates the relevant law on two fronts. On the one hand, Meta would take advantage of Facebook’s popularity to offer Marketplace’s standalone service to all Facebook users without asking. This would be unfair to competing online marketplaces and other “online advertising services”.

Furthermore, the EU executive body says that other advertising platforms that advertise via Marketplace, Facebook or Instagram, for example, are disadvantaged by Meta’s terms of use. These terms state in no uncertain terms that Meta may use competitor advertising information for its own gain through the Marketplace. The Commission writes: “[De gebruikersvoorwaarden] are illegal, excessive and unnecessary for the operation of online advertising services through the Metas platforms. Such terms are a barrier to competitors and only benefit the Facebook Marketplace.”

For now, this is a preliminary conclusion from the European Commission, which says there is “no legal deadline for completing an antitrust investigation”. Therefore, it is unclear for how long, if any, Meta must adjust its practices to comply with European Union requirements.