The European Commission announced on Thursday, November 14, that it had imposed a fine of 798 million euros on Meta for violating competition rules by linking its online advertising service, Facebook Marketplace, to its social network Facebook.
Brussels believes that the American multinational has imposed itself in this way “unfair trading conditions” to other online advertising service providers.
Meta immediately responded that he would. ” call “ of this decision that, according to the group, “ignores the realities of the European market”. In fact, you can refer the matter to the court of the European Union (EU) and start a judicial process that will probably last years, which does not exempt you from paying the fine.
This dispute is not the only one that pits Meta against the EU. The Californian group is also in question for its rules on the use of personal data for specific advertising purposes, a case that could also lead to a heavy sanction.
The fine announced on Thursday is the seventh largest ever imposed by the EU for anti-competitive practices (excluding cartels), in a ranking dominated by Google, Apple and Intel.
Google (Alphabet group) continues to be, by far, the most punished, with more than 8 billion euros in fines in total for various competition violations. It still holds the prize of the largest European fine (4.1 billion) for having abused its dominant position with Android, its operating system for mobile phones.
“This practice is illegal”
Meta, which also owns WhatsApp and Instagram, “sought to give its Facebook Marketplace service advantages that other online advertising service providers could not match”declared European Competition Commissioner Margrethe Vestager in a press release.
“This practice is illegal. Meta must now stop this behavior”he demanded. The European executive, the EU’s competition watchdog, opened a formal investigation into this issue in June 2021. It communicated its complaints in December 2022, giving Meta the opportunity to defend itself.
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The Commission claims that Facebook abused its dominant position. “All Facebook users automatically have access to Facebook Marketplace and are regularly exposed to it, whether they want it or not”he explained. she felt that “Facebook Marketplace competitors were at risk of being ousted” can’t match this “substantial advantage”.
“We will resort,” says Meta
Brussels also points out that Meta has imposed “unilaterally” of the “unfair trading conditions” to other providers who advertise on Meta platforms, “especially on their very popular social networks Facebook and Instagram”. “This allows Meta to use data generated by other advertisers for the exclusive benefit of Facebook Marketplace”considers the Commission.
“This decision ignores the realities of the thriving European market for online classified advertising services and protects large established companies from the entry of a new competitor”Meta states on the contrary. “Facebook users can choose whether or not to use Marketplace and many do not”The Californian group also assures in a press release. He also emphasizes “do not use advertisers’ data” to compete with them.
“We will appeal. In the meantime, we will comply with the requirements and work quickly and constructively to implement a solution that addresses the points raised.”added Meta, stating that the European Commission had not “I found no evidence of damage” affecting its competitors.
In early July, Brussels paved the way for another large fine against Meta by ruling that it did not respect rules on the use of personal data in the EU for targeted advertising.
To do this, the American group offered Facebook and Instagram users a paid subscription that allows them to avoid being the target of advertising. On the other hand, if they wish to maintain a free service, they must agree to provide their data. The Commission considered that this system (“payment or consent”) violates the regulation of digital services, which came into force in March.
