Meta has been classified by the German Federal Cartel Office (BKartA), the national competition authority, as a company of “primary importance for competition”. This qualification gives the regulator greater leeway to limit the market power of the digital giant.
Under a new provision of German competition law, introduced by lawmakers in early 2021, the BKartA can prohibit what it considers anti-competitive activities by large companies.
For BKartA Chairman Andreas Mundt, Meta’s large user base and extensive ad-supported digital ecosystem, which also includes WhatsApp and Instagram, make it clear that the company is a key player in social media.
“Following a disputed procedure for some time, we have now formally proven the company’s relevant position. On this basis, we are able to intervene against possible infringements of competition more effectively than with the tools we have had so far,” he says.
Several proceedings in progress
The BKartA clarifies that the new classification will serve as the basis for a faster conclusion of the antitrust proceedings pending against Meta. Notably regarding Meta’s decision to appeal a groundbreaking 2019 decision, in which the German regulator ruled that Meta, then Facebook, must obtain consent before collecting user data outside of its main network service. social.
In addition, the BKartA initiated an abuse case against Meta, in 2020, regarding links between virtual reality products Meta Quest, formerly Oculus, and Facebook.
Meta declined to appeal the BKartA’s decision, saying it would abide by the competition regulator’s decision. “While we do not share the reasoning that led to the decision of the Federal Cartel Office, we will continue to focus on providing our users in Germany with the best possible experience in compliance with all laws and regulations,” a Meta spokesperson told Reuters.
Source: ZDNet.com