EU to Launch Antitrust Investigation into Facebook Soon... Comprehensive Pressure on US Big Tech Firms

Apple and Amazon Indicted for Antitrust Violations, Facebook Also Under Investigation
EU Proposes Bill Imposing Fines of 10% of Annual Revenue for Anti-Competitive Practices

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] The European Union (EU) is expected to soon launch an antitrust investigation into Facebook. Following the indictment of Apple and Amazon for antitrust law violations, the likelihood of an official antitrust investigation into Facebook is increasing, signaling intensified pressure from the EU on major American tech companies.

On the 26th (local time), the Wall Street Journal (WSJ), citing sources familiar with the matter, reported that the European Commission plans to initiate an antitrust investigation into Facebook within weeks.

According to the report, the Commission's investigation will examine allegations that Facebook favors its own online secondhand marketplace, "Marketplace," over other companies selling goods on its platform.

If the official investigation is launched, it will be the first case in which the Commission investigates Facebook for antitrust law violations. Depending on the investigation's outcome, if Facebook is found to have engaged in anti-competitive behavior, the EU plans to indict Facebook for antitrust violations.

Previously, the EU criticized Facebook for abusing its market dominance on its platform to engage in anti-competitive practices and has conducted preliminary investigations into antitrust violations over the past year. Meanwhile, European political circles have raised suspicions that Facebook used personal data of its users to collect information about competing apps used by those users.

In 2017, the EU imposed a fine of 110 million euros on Facebook for providing false information to regulators during the review of Facebook's acquisition of the messaging app WhatsApp.

With the EU's antitrust investigation into Facebook expected to begin soon, analysts suggest that the EU is mounting comprehensive pressure on American big tech companies. Previously, the EU indicted Amazon for antitrust violations in November last year, followed by Apple last month, and is reportedly pursuing an antitrust investigation against Alphabet, Google's parent company.

The EU explained that the reason for indicting Apple was due to forcing Spotify, a music streaming competitor, to use Apple's in-app payment system (which only allows Apple's payment system), resulting in excessive payment fees. Additionally, the EU pointed out that Amazon has engaged in anti-competitive behavior by collecting undisclosed information about third-party sellers on its platform.

Margrethe Vestager, European Union (EU) Commissioner for Competition
[Photo by AP Yonhap News]

Furthermore, Margrethe Vestager, the EU Commissioner for Competition, has proposed the "Digital Markets Act," which includes additional regulations on big tech companies. According to the proposal, digital platform companies such as Google and Facebook would be prohibited from prioritizing their own services over those of competitors, and violations could result in fines of up to 10% of annual revenue.

This content was produced with the assistance of AI translation services.