Meta Faces French Antitrust Probe Over Online Ad Practices

France’s antitrust authority has formally notified Meta Platforms Inc. of a potential breach of competition laws in the online advertising market. The regulator has accused Meta of exploiting its dominant position by limiting access to ad verification partnerships for ads it sells under allegedly opaque, discriminatory, and unfair terms. This move by the French competition authority comes as part of a broader investigation into Meta's practices in the online advertising sector.

The notification, formally known as a statement of objections, does not determine the probe’s outcome. Meta will be allowed to respond and defend itself, the agency added. A Meta spokesperson in Paris did not immediately respond to a request for comment. This development follows a series of legal challenges faced by Meta in the online advertising sector. French media firms, including TF1, France TV, and BFM TV, have sued Meta over allegedly illegal business methods. This lawsuit comes after a group of 67 media companies, representing 200 publications, filed a case in the Paris business tribunal court in April. They claimed Meta’s leading position in the digital advertising market was largely due to illegal activities such as massive personal data collection and the utilization of targeted advertising.

The company will also face trial this October in Spain over a 551 million euro complaint, equivalent to a $582 million complaint lodged by more than 80 media companies accusing it of unfair competition in advertising. Additionally, in February, online rights activists lodged complaints in Europe over Meta’s ad practices. Earlier, EU antitrust regulators fined Meta and Apple for what they said were breaches of EU law. The French media groups are being represented in the Paris case by US law firm Scott+Scott and French law firm Darrois Villey Maillot Brochier. It is not only the television companies involved, but also Figaro, Lagardere, L’Express, La Depeche, Liberation, Radio France, and Centre France.

This investigation into Meta's practices is part of a larger trend of increased scrutiny on tech giants by antitrust authorities around the world. In recent years, there has been growing concern about the dominance of large tech companies in various sectors, including online advertising. This has led to a number of investigations and legal actions against these companies, with the goal of promoting fair competition and protecting consumers. The outcome of the investigation into Meta's practices could have significant implications for the online advertising industry. If the French competition authority finds that Meta has violated competition laws, the company could face fines and other penalties. Additionally, the investigation could lead to changes in Meta's practices, which could have a ripple effect throughout the industry. Advertisers and other companies in the online advertising sector will be closely watching the developments in this case, as the outcome could have a significant impact on their businesses.