Il Facebook Marketplace it would violate European Union antitrust rules, harming competitors and distorting competition in the online advertising market. These are the accusations that the European Commission addressed to Meta in the preliminary opinion sent to the company as part of the investigation launched last year.
The accusations of the EU in Meta
According to the EU Commission, Meta, the company of Mark Zuckerberg that controls Facebook, Instagram and Whatsapp, allegedly violated antitrust rules by distorting competition in online classified ad markets. Brussels is challenging Meta for tying its online classifieds service, Facebook Marketplace, to its personal social network, Facebook. The Commission also fears that Meta is imposing unfair trading terms on Facebook Marketplace competitors for its own benefit.
In detail, the Commission notes that Meta has abused its dominant position in two ways: firstly, the link between Facebook Marketplace and the social network Facebook means that users automatically access the micro-ad platform, whether they want it or not. Brussels therefore fears that "Facebook Marketplace's competitors may be foreclosed as the tie gives Facebook Marketplace a substantial distribution advantage that competitors cannot match," the note reads.
Secondly Meta would impose unilaterally unfair trading conditions to competing online classifieds services that advertise on Facebook or Instagram.
What does Facebook risk?
If confirmed, such practices would violate Article 102 of the Treaty on the Functioning of the European Union (TFEU). If, following the investigation, the Commission deems that there is sufficient evidence for an infringement, it will be able to prohibit Meta from continuing with its policy and impose on the company a fine up to 10% of its worldwide turnover annual.
