Meta, the parent company of Facebook, is preparing to challenge antitrust allegations from the European Union during a closed hearing scheduled for Friday. This comes in response to accusations that it coerces users by linking its classified advertisements platform to its widely-used social network, individuals familiar with the matter disclosed.
The European Commission issued a formal charge against Meta last December, highlighting specific practices that it argues demonstrate the company’s abuse of its dominant position in the market.
According to the Commission, the integration of Facebook Marketplace with the social networking service gives unfair leverage to the classified advertising component.
Furthermore, the Commission raised concerns about the unfair trading practices Meta allegedly imposes on competing classified ads services that wish to advertise via Facebook or Instagram.
Meta has chosen not to comment on the impending hearing, which will feature senior officials from the Commission’s antitrust division alongside representatives from national regulatory bodies to assess Meta’s defense.
Tim Lamb, a lawyer representing Meta, stated, “The European Commission’s allegations are unfounded. We remain committed to collaborating with regulatory authorities to illustrate that our innovations are beneficial to consumers and foster competition.”
If proved guilty of violating EU antitrust regulations, Meta could face penalties amounting to 10% of its global revenue, in addition to potentially being ordered to revise its business practices. Sources indicate that the company had previously sought a resolution to the case, as reported by Reuters.
© Thomson Reuters 2023
