Following the European Commission's decision to impose a €797 million fine on Meta for alleged anticompetitive practices, the Information Technology and Innovation Foundation (ITIF) has expressed its concerns. The ITIF is recognized as a leading think tank focused on science and technology policy.
Joseph V. Coniglio, director of antitrust and innovation at ITIF, commented on the situation: "With another huge antitrust fine against a leading American technology company, the European Commission has again weaponized a competition regime that has substantially contributed to Europe’s innovation malaise against successful U.S. digital firms—a policy that will not be well received by the incoming Trump administration."
Coniglio further argued that claims of Meta illegally tying Facebook Marketplace usage to its social network are unfounded. He stated, "The notion that Meta is illegally tying the use of Marketplace to Facebook is belied by the fact that Facebook users are not at all required to participate on Marketplace, an ecosystem that has resulted in tremendous benefits for European businesses and consumers."
He also dismissed allegations regarding Meta's dominance in social networking providing it with an unfair advantage in Marketplace. Coniglio pointed out, "Large American marketplaces, such as Amazon and eBay, as well as many dynamic firms across Europe compete broadly in the online display advertising space, providing more than effective competitive constraints to Marketplace."
Coniglio raised concerns about the Commission's data misappropriation claim: "The Commission’s ancillary data misappropriation claim is perhaps even more troubling, as it reflects another instance of the Commission resorting to its otherwise rarely invoked authority to police 'exploitative' abuses in cases involving 'Big Tech.' And yet, not only does Meta not leverage advertiser data in this way, but such a speculative and exploitative theory of harm goes well beyond what would be actionable under U.S. law."
He criticized European competition policies following this decision against Meta: "Notwithstanding the landmark Draghi Report...this decision against Meta makes clear that the Commission will continue to double down on challenging conduct that harms competitors and not consumers."
Coniglio concluded by warning about potential negative impacts on transatlantic relations: "While European policymakers may believe that taking this approach for regimes like Article 102 and the Digital Markets Act can help level the playing field for European firms...placing totally unnecessary strains on a transatlantic relationship that is critical to countering China’s quest for global techno-economic dominance."
Contact information was provided for Sydney Mack at [email protected].
