EU and Korea Spell Double Trouble for Meta
The European Commission has fined Meta EUR 797.72 million for abusing its dominant position.
The Commission found that Meta breached Article 102 of the TFEU (Treaty on the Functioning of the European Union) by linking user access to the Facebook platform with the Marketplace and directing them to the Marketplace without providing a choice (thereby exposing them to Marketplace services on a continuous basis). It also found that Meta services, in particular Facebook and Instagram, imposed unfair commercial terms on advertisers and used data obtained from them for the Marketplace's benefit.
It was found that Meta dominates the individual social networking and online display advertising markets.
These rulings, the result of an investigation launched in June 2021, and details of the fine will be made public on the Commission's website under decision number AT.40684.
Not to be outdone, South Korea's Personal Data Protection Commission announced on November 5 that it has fined Meta USD 15.7 million after the company collected data from approximately 980,000 local users (sharing details of approximately 4,000 of these users with advertisers).
Argentine Anaesthesia Association Hit with Dose of Fine
Argentina's National Commission for the Defence of Competition ("CNDC") has proposed a penalty against the Asociación Austral de Anestesia, Analgesia y Reanimación (National Association of Anaesthesia, Analgesia and Resuscitation) for anticompetitive and exclusionary exercise of dominance.
The investigation arose from a 2017 complaint filed by Obra Social de los Empleados de Comercio y Actividades Civiles (Social Security Institution for Trade and Civil Activities Employees) which represents 90% of anaesthesiologists in the province of Chubut. The CNDC found provisions in the association's by-laws applied exclusionary effects which prevented anaesthesiologists from contracting through another entity.
On May 8, 2024, the CNDC recommended that the association be fined 73 million Argentine pesos (approximately EUR 69 thousand) and that the relevant by-law be amended/removed. The Secretary of Industry and Commerce ordered implementation of the recommendations on November 4, 2024.
Major Reform in Guatemala
According to a press release dated November 20, 2024, the Guatemalan Congress has adopted a new law to ensure transparency and equality in domestic markets which is based on four pillars: (i) prevention of monopolistic structures through market fairness, (ii) prevention of monopolization by disallowing establishment of market power which enables influence of price or quality, (iii) protection of consumers; and (iv) ensuring competition transparency. The new law stipulates two main prohibitions: sales below the cost of production and prevention of discriminatory conditions. Sanctions include fines of up to 200,000x the current daily non-agricultural minimum wage of EUR 13.58. The new law will be overseen by the Superintendence of Competition or a new Competition Commission to be established under the Ministry of Economy.
'Unapproved Leadership Shuffle' Costs GBP 1.5 Million
The UK Competition and Markets Authority ("CMA") has imposed a fine of GBP 1.5 million on Viatris for breach of interim orders during its investigation into company's sale of the European rights to the drugs Femoston and Duphaston to Theramex. The CMA had determined that the agreement could reduce options for hormone therapy treatment in the UK and, accordingly, made an interim order preventing Viatris from making significant changes to its UK management team without CMA approval. The company subsequently both made changes to its UK management team without approval and did not notify the CMA of the breach which had the potential to negatively impact the investigation. In a press release, a senior CMA director emphasized the vital importance of interim orders and the authority's dedication to ensuring they are complied with. She also stated that the CMA may impose fines of up to 5% of a party's global turnover in cases of non-compliance.
Fashion Fail for Pierre Cardin and Ahlers
The European Commission has fined Pierre Cardin and its largest licensee Ahlers a total of EUR 5.7 million for breaching EU competition rules by prohibiting cross-border sales of Pierre Cardin-branded clothing to certain retailers Iconic French fashion house Pierre Cardin licenses its brand to third parties; Ahlers was its largest licensee from 2008 to 2021. The Commission found that Pierre Cardin and Ahlers engaged in anti-competitive practices, within the meaning of Article 101 TFEU, which protected the latter from competition by preventing other licensees and retailers from selling Pierre Cardin branded products at lower prices. This resulted in territorial protection for Ahlers and artificial market fragmentation in certain European Economic Area (EEA) countries. In a press release dated November 28, the Commission stated that such restrictions impede the free functioning of internal markets, narrow competition, and increase prices for consumers.
Competition Takes Lead for Furry Greek Friends
The Hellenic Competition Commission ("HCC") has conducted an on-site investigation at a pet food company to identify vertical agreements pursuant to Article 101 of the TFEU. According to a HCC press release, Greece has significant respective dog and cat populations of 660,000 and 605,000 (with 14% and 13% of households enjoying the company of a canine or feline friend respectively). The announcement underlined that, while pet food prices have risen rapidly in the previous two years, the Greek increase has been 1.2% higher (at 1.8%) than in the Eurozone (at 0.6%).
The HCC therefore emphasized that competition violations may lie behind this increase and that it will conduct enforcement in the sector.
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