The EU Fee opens a proper investigation towards Fb. It considerations the suspicion of competitors violations in reference to the categorized advert service “Fb Market”. This was introduced by the EU Competitors Commissioner Margrethe Vestager on Friday in Brussels. The Fee will “give precedence to this in-depth investigation” and thereby cooperate with the British market regulator CMA, which is now additionally investigating Fb.
The EU Fee is investigating whether or not Fb makes use of promoting information from advertisers in different markets, for instance within the subject of categorized promoting providers,
Communication from the EU Commission
. She additionally needs to analyze whether or not Fb is violating EU competitors guidelines by linking its market to its social community. Facebook’s classifieds market has existed in Germany for almost four years.
“Fb is utilized by practically three billion individuals every month and has practically 7 million complete advertisers,” Vestager stated. The corporate collects massive quantities of information concerning the actions of its customers and may due to this fact goal particular buyer teams. “We are going to examine in depth whether or not, due to this information, Fb has an unjustified aggressive benefit, significantly within the space of on-line categorized advertisements, by which individuals purchase and promote items day-after-day.”
If Fb’s competing corporations promote their providers on its social community, Fb could come into possession of economically invaluable information, suspects the EU Fee. Fb might then use this information to compete with them. This is applicable significantly to operators of on-line categorized promoting providers. These would promote their buying and selling platforms on Fb’s social community, whereas on the similar time they’d be in competitors with the Fb Market.
In accordance with preliminary investigations, the Fee can not rule out that Fb is distorting competitors in on-line categorized promoting providers. These practices might violate EU guidelines on anti-competitive agreements between corporations (Article 101 of the Treaty on the Functioning of the European Union, TFEU) and the EU guidelines on abuse of a dominant place (Article 102 TFEU).