Meta has been classified by the German Federal Cartel Office (FCO) as a “competitively important” company, a move that gives the regulator more time to rein in the market power of the company. digital giant.
Under a new provision of German Competition Act, Introduced by lawmakers as early as 2021, the FCO could ban what it considers anticompetitive practices by large companies.
FCO President Andreas Mundt stated that Meta’s large user base and extensive ad-supported digital ecosystem – including WhatsApp and Instagram – clearly illustrate that the company is an important social media player.
He said: “After a controversial process for some time, we have officially proven the relevant position of the company. Based on this, we are able to intervene against the conduct. potentially more effective than the toolkit available to us to date.”
The FCO added that the new classification will provide the basis for a quicker conclusion of ongoing antitrust proceedings against Meta. These include Meta’s aggressive call for a groundbreaking decision from 2019, which FCO ruling Meta, then known as Facebook, had to obtain consent before collecting data about users outside of its main social networking service.
Furthermore, the FCO has start abuse proceedings against Meta in 2020 regarding links between Meta Quest, formerly Oculus, virtual reality products, and Facebook.
Meta waives its right to appeal the FCO’s decision and declares that it will comply with the cartel office’s decision.
“Even if we do not share the reasons for the decision of the Federal Cartel Office, we will continue to focus on providing our users in Germany with the best possible experience in order to comply with all both laws and regulations,” a spokesperson for Meta speak Reuters.
