Meta Hit With EU Antitrust Charges Over Marketplace Service (bloomberg.com) 32
Meta Platforms was hit with a formal complaint from European Union antitrust watchdogs for allegedly squeezing out classified ad rivals by tying the Facebook Marketplace to its own social network. From a report: The European Commission said Monday it issued a so-called statement of objections to Meta, paving the way for potential fines or changes to the firm's business model. "With its Facebook social network, Meta reaches globally billions of monthly users and millions active advertisers," EU Antitrust Commissioner Margrethe Vestager said in an email announcing the escalation of the case. "Our preliminary concern is that Meta ties its dominant social network Facebook to its online classified ad services called Facebook Marketplace," meaning "Facebook users have no choice but to have access to Facebook Marketplace."
The EU watchdog said it's also concerned that Meta imposes unfair trading conditions which allow it to use data on competing online classified ad services. The case is the latest in a long-running Europe-wide crackdown on the market power of tech firms such as Google, Apple and Amazon that's led to multiple probes, fines and beefed-up laws. The EU previously fined Facebook for failing to provide correct information in the merger review of the WhatsApp takeover. Meta is also the subject of investigations in the UK and Germany.
The EU watchdog said it's also concerned that Meta imposes unfair trading conditions which allow it to use data on competing online classified ad services. The case is the latest in a long-running Europe-wide crackdown on the market power of tech firms such as Google, Apple and Amazon that's led to multiple probes, fines and beefed-up laws. The EU previously fined Facebook for failing to provide correct information in the merger review of the WhatsApp takeover. Meta is also the subject of investigations in the UK and Germany.
What a load of crap. (Score:2)
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I fully agree Facebook are market bullies and deserve antitrust intervention but this seems like an incredibly stupid thing to pick at. It's literally just saying "You need an account to use their site so that's not allowed" which - pardon mon francais - is fucking daft.
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link to the original press release https://ec.europa.eu/commissio... [europa.eu]
Bullet points fully quoted:
First, Meta ties its online classified ads service Facebook Marketplace with its dominant personal social network Facebook. This means that users of Facebook automatically have access to Facebook Marketplace, whether they want it or not. The Commission is concerned that competitors of Facebook Marketplace may be foreclosed as the tie gives Facebook Marketplace a substantial distribution advantage that competitors cannot match.
Second, Meta unilaterally imposes unfair trading conditions on competing online classified ads services which advertise on Facebook or Instagram. The Commission is concerned that the terms and conditions, which authorise Meta to use ads-related data derived from competitors for the benefit of Facebook Marketplace, are unjustified, disproportionate and not necessary for the provision of online display advertising services on Meta's platforms. Such conditions impose a burden on competitors and only benefit Facebook Marketplace.
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No. The complaint is that advertisements for other market places are not treated equally on Meta's platforms which instead prioritise their own competing service. This is what is called "anti-competitive". In order for it to be illegal however an anti-competitive practice needs to be combined with specific market power, which Meta has on account of every idiot having a Facebook account automagically having access to the Marketplace even if they have no interest in ever using it and even though it's not the
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Indeed. And these laws are needed to keep capitalism going reasonably well.
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Obviously you do not understand how antitrust works and why it is critically needed to keep capitalism functional.
So not a problem. (Score:1)
The cost of doing business and written off as a business loss regarding taxes.
Re:Fingers into everything (Score:4, Informative)
Read the very first sentence. Meta only allowing Facebook marketplace ads and no one else is the problem.
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It's a private company website. A company that has its own advertising service. Under no circumstances should it be required to use third-party advertising services on its own website. If a third-party wants to advertise on that company's website then it should be required to submit the ads to that company's advertising service full stop.
Does Google AdWords or whatever they call themselves these days also have to serve up Facebook
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If the EU is now trying to say that individual private companies are now required to allow competing services on their own site then the EU leadership is completely fucked in the head and I have little confidence in the long-term success of eCommerce in Europe.
Sounds like the EU is enforcing competition. Isn't that a good thing?
Re:Fingers into everything (Score:4, Insightful)
Read the very first sentence. Meta only allowing Facebook marketplace ads and no one else is the problem.
So? Is Meta forcing people to use Facebook marketplace? The EU won't give up on it's now idiotic commands.
Should best buy be forced to show ads from Newegg? If you go to Bestbuy, you won't see other companies ads.
Quick EU - lets extract a billion or so from Bestbuyt - they are implementing a system that forces people to only see what Bestbuy wants them to see!
I get it. There are some people in this world who demand to have complete control over every aspect of everyone's life. Total control, and always framed as protecting people.
The idea that people are constrained, have absolutely no choice, and are somehow forced into buying only from the Facebook/Meta marketplace, is reaching the point of the big lie. Protecting you from something you don't need protested from for your own good.
That you support this is showing what you are, but have you ever wondered that this is just switching out control to someone else? How much control of your life does Facebook or Meta have versus how much control of your life you are giving up by having the EU protect you from everything?
Me - I just click a different link. You are somehow not allowed to do that, is the argument.
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You're comparing two different things. Facebook is a platform and there's no good reason why ads should be banned. Google advertise apple products on youtube as well as in search results.
No I'm not. Give me the logic behind demanding that everyone's ads should be shown on Facebook marketplace. Why are the citizens of the EU forced by Facebook to only purchase items from Facebook or Meta? Something on their computers broken?
Is it that the EU believes their citizens are so stupid that they believe that the only place to buy anything is Facebook?
I know that there are people in this world who demand complete control over all aspects of other's lives. You are one of them, and I'm not going
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So? Is Meta forcing people to use Facebook marketplace? The EU won't give up on it's now idiotic commands.
You're being obtuse. These are existing laws that are being enforced. It might seem strange to Americans.
Should best buy be forced to show ads from Newegg? If you go to Bestbuy, you won't see other companies ads.
Best Buy is a retailer and not a social media/VR platform. Total strawman argument.
Quick EU - lets extract a billion or so from Bestbuyt - they are implementing a system that forces people to only see what Bestbuy wants them to see!
Again, you seem under the impression the EU just comes up with new laws at random. These are existing anti trust laws.
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So? Is Meta forcing people to use Facebook marketplace? The EU won't give up on it's now idiotic commands.
You're being obtuse. These are existing laws that are being enforced. It might seem strange to Americans.
I'm never going to claim I'm anything other than stupid. Can you explain how, given all of the choices consumers have, that Meta is somehow a trust or monopoly? How is it a monopoly? Explain it like the obtuse person I am, 10 year old level because I need to understand that Meta is indeed a monopoly. It sems like there are thousands of alternatives.
Again, you seem under the impression the EU just comes up with new laws at random. These are existing anti trust laws.
I'm, actually under the impression that the main purpose is regulation, and that pecuniary extraction is really important.
Anyhow, I understand that there a
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So? Is Meta forcing people to use Facebook marketplace? The EU won't give up on it's now idiotic commands
Not forcing the use of. Forcing the creation of accounts. This provides them with a significant market advantage. Combine that with the anti-competitive action of banning competitors ads for an unrelated product and you have what is known an an anti-trust violation.
This isn't the EU by the way, most country's anti-trust laws work this way. The only difference is in the USA prosecutors doing give a flying fuck, and when they do the courts almost always require direct calculation of harm to users making enfor
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I've never bought anything on facebook and my account has been closed for an unknown amount of time, but isn't there a way to do a guest checkout?
Every website I've ever bought anything on usually has an option to register an account or otherwise checkout as a guest. Is this not the case with Facebook? Can you even use Facebook without an account?
Seems to me, if you could go to Facebooks market place and checkout as a guest, there is no problem. I still don't see the problem with requiring an account to use
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If this is about advertising access, I don't understand why Facebook would be required to show direct competitors ads on their site. Albertson's doesn't show Kroger ads in their store, Walmart doesn't have a Target Ad next to their flyer and Nike doesn't have a Sketchers section...
It is in no way shape or form anything about Advertising access. It's a shakedown. EU has found that it is a great source of revenue, and they will squeeze it for every piaster they can get out of it.
A billion dollars here, a billion dollars there, after a while it adds up.
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Read the very first sentence. Meta only allowing Facebook marketplace ads and no one else is the problem.
No, that's absolutely false. You didn't read the whole summary. They're arguing that the stuff described there effectively pushes rivals out of the market, Facebook absolutely does not only allow "Facebook marketplace ads", whatever you think that means. (A "Facebook marketplace ad" would be an ad for or on facebook marketplace; Items sold through facebook marketplace are sold through listings, not ads.)
The claims are that 1) Every Facebook user has access to Facebook Marketplace, and this is an unfair adva
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Seems like a lot of fake outrage over nothing. A good way for unelected government bodies to appear to be doing something.
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At some point, the EU starts to look like Highway Robbers, as they attempt to extort money and regulate every aspect of life for the world.
To paraphrase every bigot ever, if Facebook don't like it they can go home.
Line between ads and classifieds? (Score:3)
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What's the difference between an ad and a classfied?
Not the issue at play here. The issue here is that Facebook decided there's a difference between an advert and a classified, and when it deems something is the latter it takes action to promote its own service.
Will EU next ban Facebook's legacy ad delivery system and thereby its whole business model?
No, why would they? There's nothing wrong with running an ad delivery system. The only action that is taken against them anywhere by anyone are those ad delivery systems which push out competitors in the favour of promoting the ad delivery company's on unrelated service.
This is what is called being "a
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Of course they are going to self promote over the competition. Who wouldn't? Hardly anti-trust because Facebook holds no monopoly. They aren't essential for ANYTHING. The whole site could go offline and alternatives exist and can definitely spring up.
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Probably not, more's the pity.
Wait, what? (Score:2)
"Our preliminary concern is that Meta ties its dominant social network Facebook to its online classified ad services called Facebook Marketplace," meaning "Facebook users have no choice but to have access to Facebook Marketplace."
Having access to something doesn't mean you have to use it, and it also doesn't affect your access to anything else. I'm generally in favor of reining in corporate abuses, and twice when it's faceboot, but how on earth does this qualify? If you want to show anticompetitive behavior then you're going to have to show that Facebook suppresses items for sale not listed on Marketplace. I could believe that's happening, but I haven't seen any evidence. For example, you can share Craigslist posts to Facebook, and
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Having access to something doesn't mean you have to use it
No. But by having access to it the person who granted you access involuntarily has market power. Market power restricts what a company can or can't do in order to fight competitors.
What a lot of people fail to realise is the same action done by one company may be perfectly legal, but for another company it becomes a breach of anti-trust rules because of different market circumstances surrounding those actions.
Having access to something is a market circumstance. It's not the complaint here. The complaint is
I never ... (Score:2)
... Meta Platform I didn't like.