Meta under closer surveillance

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The German regulator has decided to place the US-based company Meta, parent to Facebook, under closer scrutiny.  This decision comes under a 2021 law expanding its powers against the net heavyweights.

A company of paramount importance

The Federal Cartel Office said it had determined that Meta was a company of « paramount importance » on the market, thus paving the way for the authorities to sanction « possible infringements of competition ». 

This decision comes as two investigations targeting the group have already been initiated by the German antitrust authority.

A recent antitrust law 

As mentioned above, the Anti-Cartel Office is applying a law that came into force last year, designed to strengthen its powers against market-dominant digital companies. This text gives it the power to regulate the activities of targeted groups. 

As such, it had also ruled at the end of 2021 that Alphabet (Google) held a dominant position. 

No objections from Meta 

Meta said it will not appeal the decision, according to the agency’s statement. « The digital ecosystem created by Meta with a very large number of users » makes the company a « central player in the social media space, » commented the agency’s chairman, Andreas Mundt.

Antitrust noted Meta’s « central position » in its markets, a classification that gives it the ability « to fight any competition law violations much more effectively » than before.

 

Source : 
Le_Figaro. “Concurrence: Le Régulateur Allemand Place Meta (Facebook) Sous Surveillance Renforcée.” LEFIGARO, 4 May 2022, https://www.lefigaro.fr/flash-eco/concurrence-le-regulateur-allemand-place-meta-facebook-sous-surveillance-renforcee-20220504.

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