Goal faces new problems in the European Union, this time due to the close relations between Facebook and Facebook Marketplace, its trading space. The EU has filed a complaint against the company for, as they say, use abusive practices in relation to Facebook Marketplace that are distorting competition in the classified advertising sector.
The EU Competition Commission has issued a “statement of objections«, which recounts the preliminary discoveries of the investigation opened in the EU against Meta and its platform. In addition, it warns that the result does not look good for the company, which could face a fine of up to 10% of its annual income if these results are confirmed. According to CNBC, the fine for Meta could therefore reach 11.8 billion dollars. Aside from having to pay the fine, Meta would also have to make changes to Facebook Marketplace.
The investigation leading to this complaint was opened in June 2021, and is seeking to clarify whether Meta’s platform creates an unfair environment for the company’s rivals, and by doing so denies those living in the European Union the opportunity to choose in the accounts of which platforms they are identified.
According to European Commissioner Margrethe Vestagerthe main concern of the EU is that «Meta associate your dominant social network, Facebook, with your Facebook Marketplace classifieds service. This implies that Facebook users have no choice but to access Facebook Marketplace.«. Another concern for the European Union is that Meta is imposing unfair trading conditions on Facebook Marketplace competitors for its own benefit, according to Vestager.
Unsurprisingly, in the EU they disagree with the results of the EU investigation; nor with the claims they are making about Facebook and Facebook Marketplace. According to Tim Lamb, Met EMEA Competition Managera, “the claims made by the European Commission are baseless. We will continue to work with regulatory authorities to demonstrate that our product innovation is pro-consumer and pro-competitive.«.
Meta will now have the opportunity to present its arguments in the EU in writing, in addition to being able to request a closed-door hearing with antitrust investigators before they make their final decision.
