Meta takes on ‘Tyrant’ EU for crackdown on Big Tech, will fight 'gatekeeper' tag

Meta takes on ‘Tyrant’ EU for crackdown on Big Tech, will fight 'gatekeeper' tag

Nov 16, 2023 - 16:30
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Meta takes on ‘Tyrant’ EU for crackdown on Big Tech, will fight 'gatekeeper' tag

With the EU cracking down on Big Tech, and designating some of the biggest companies as gatekeepers, it was only a matter of time before someone took issue with them.

Meta Platforms Inc. has contested the European Union’s recent crackdown on the dominance of major technology corporations, setting the stage for a legal battle between regulators and the social media giant.

The company contends that the European Commission erred in subjecting Facebook’s Marketplace and Messenger services to the new digital antitrust regulations of the bloc, as outlined in an appeal submitted to EU courts on Wednesday. This legal dispute positions Meta against EU lawyers in opposition to the Digital Markets Act (DMA), which aims to curtail market abuses.

On Wednesday, a spokesperson for Meta stated, “This appeal seeks clarification on specific points of law regarding the designations under the DMA. It does not alter or detract from our firm commitment to complying with the DMA.” Despite the appeal, the company emphasized its dedication to abiding by the DMA’s regulations.

The European Commission refrained from commenting on the legal challenge. The DMA imposes requirements on Meta, compelling the company to secure users’ consent before sharing data between Marketplace and other Meta-owned services. Additionally, it mandates Messenger to collaborate with competing online messaging platforms, with enforcement of these obligations set to begin in March.

In a broader context, the DMA criminalizes specific platforms favoring their own services over those of competitors. Provisions include prohibiting the amalgamation of personal data across different services, preventing the use of data collected from third-party merchants for competitive purposes, and ensuring users can download apps from rival platforms.

Among the 22 platforms covered by the DMA, Alphabet Inc.’s Google Search, Apple Inc.’s Safari, Amazon.com Inc.’s marketplace, and ByteDance Ltd.’s TikTok are included. Apple is expected to file an appeal challenging the inclusion of some of its services.

Meta is already entangled in a separate dispute with the EU following the December complaint by the European Commission.

The complaint alleged that the California-based company stifled competition from classified ad rivals by linking Facebook Marketplace to its extensive social network. While Meta is contesting these allegations in the EU, it has resolved a similar case initiated by the UK’s competition watchdog.

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