The French Competition Authority’s Decision on Meta’s Commitments

31.07.2022 Aslı Su Çoruk
The French Competition Authority’s Decision on Meta’s Commitments
% 0

Introduction

The French Competition Authority (Autorité de la Concurrence), within the scope of the competition law proceeding initiated upon the complaint of Criteo SA (“Criteo”), accepted the commitments proposed by Meta Platforms Inc., Meta Platforms Ireland Ltd., and Facebook France (together “Meta”) in order to address the competitive concerns in the French market regarding the online advertising sector.[1] The decision is noteworthy as it demonstrates Meta’s strong position in the social media and advertising services market. It is also significant as the decision constitutes the first case where a worldwide competition authority has accepted commitments proposed by Meta.

Information on the Undertakings

The complainant Criteo is a French company operating in the field of online advertising. By means of the technologies it has developed, it provides advertising mediation services to its customers in order to improve the placement of their ads on various platforms such as Facebook and Instagram, through the retargeting method.

Meta, on the other hand, offers a variety of products and services to internet users, advertisers and developers. Meta provides advertisers with its own ad inventory (Facebook, Instagram and Messenger). Additionally, it provides publishers with the Meta Audience Network advertising network service.

Recap of the Process

Since 2016, Meta has offered certain application programming interfaces (“APIs”)[2] to various intermediary undertakings, including Criteo. Criteo uses these interfaces to improve bidding and campaign performance tracking. In 2018, Meta ceased to provide such services to undertakings, including Criteo.

In addition, Criteo was prevented from being a “Facebook Business Partner” (now “Meta Business Partner”). This partnership allowed undertakings to benefit from the system in order to improve their service quality, gain easier access to interfaces and increase their reputations in the eyes of their customers. The partnership is perceived by advertisers as a guarantee of quality in terms of campaign management, technical expertise and know-how.

Based on all these actions, Criteo filed a complaint with the French Competition Authority. The complaint alleged that Meta abused its dominant position, and that Criteo was unable to fully use its own technologies to conduct its business due to Meta’s practices.

Competitive Concerns

As a result of its assessment, the French Competition Authority concluded that Meta’s various applications raised competitive concerns in the “non-search-related online advertising” market in France. Since the share of Meta in this market was 49% in 2018 and 50% in 2019, Meta is considered to be in a dominant position.

As for the competitive concerns, the Authority first evaluated Criteo’s removal as a Facebook Business Partner in 2018. Criteo’s removal from the program in question was interpreted as a failure to comply with criteria such as objectivity, transparency, predictability and consistency in terms of access.

Another competitive concern was that Meta sales teams had conducted practices against Criteo since the end of 2017. The Authority held that these practices had prevented Criteo from re-entering the Facebook Business Partner program.

Finally, in 2018, Meta blocked Criteo’s access to an API called “User-Level Bidding”, which was made available to a limited number of companies for trial purposes. The API allowed Criteo to use its own bidding and product recommendation technologies to optimize retargeting offers within the Meta advertising ecosystem. In this context, the blocking of Criteo raised concerns about the transparency, impartiality and non-discriminatory nature of the terms of access to Meta APIs.

In light of the considerations stated above, the French Competition Authority determined that the competition between online advertising providers who want to place their ads in Meta’s inventory was distorted. Similarly, due to Meta’s strong position, there was a question of whether a foreclosure effect exists for intermediary undertakings such as Criteo, which compete with the retargeting services developed by Meta.

Meta’s Commitments

In order to eliminate these concerns, Meta proposed commitments. After evaluating these commitments, the French Competition Authority accepted them, concluding that they could be effective in addressing competitive concerns. The commitments include all advertising service providers participated in at least one advertising campaign targeting Meta’s service users in France during a period of one hundred and eighty days. The commitments proposed by Meta are set forth below:

Conditions of Access to the Partnership Program

Firstly, Meta committed to provide access to the Meta Business Partner program to companies operating in the field of advertising services (“AdTech”).[3] Meta considered that such access will be subject to various quantitative criteria, such as the amount spent on advertising campaigns. In addition, Meta committed to automatically re-include undertakings that were previously included in the partnership program.

Training of Sales Teams

Secondly, Meta committed to provide compliance training to its sales teams regarding their communications made with their advertising clients. Employees are expected to receive training every year and to answer all questions correctly in the exam they will be subjected to at the end of the training. The French Competition Authority determined that the implementation of this commitment for a period of five years would be sufficient to eliminate the competitive concerns.

The Provision of a New Interface for Advertising Service Providers

Meta committed to develop a new API for advertising service providers. Available for free, the API enables personalized product recommendations to be offered on social media channels managed by Meta. The French Competition Authority envisaged that the relevant commitment will continue for a period of three years and decided that this commitment could eliminate competitive concerns as the terms of access to the API are sufficiently objective, transparent and fair. In addition, it stated that, thanks to this commitment, advertising service providers will be able to conduct their business using the methods they have chosen and to develop their customers’ advertising campaigns.

Monitoring of the Commitments

Finally, the appointment of a third party is envisaged by the French Competition Authority to monitor the commitments proposed by Meta. The person in question is to be independent of Meta, fulfill the legal requirements, and have certain qualifications in statistics and information technologies. If a breach of commitments occurs, this person should share their observations with Meta and alert Meta if necessary. In addition, the trustee shall notify the French Competition Authority in cases where it considers that Meta has breached its commitments due to the violation of principles such as objectivity and proportionality.

Conclusion

As a result of the French Competition Authority’s decision, the competitive concerns that have emerged in the online advertising sector in France due to various practices of Meta, which is considered to be in a dominant position, should be eliminated, as Meta’s commitments have been rendered binding.

References
  • The French Competition Authority’s decision, No. n° 22-D-12, 16.06.2022.
  • API is a software interface which allows two or more computer programs to communicate with each other.
  • AdTech (Advertising Techology) refers to a specialized advertising technology. Specifically, it refers to the tools and software that advertisers use to deliver and measure digital advertising campaigns as well as reach audiences.

All rights of this article are reserved. This article may not be used, reproduced, copied, published, distributed, or otherwise disseminated without quotation or Erdem & Erdem Law Firm's written consent. Any content created without citing the resource or Erdem & Erdem Law Firm’s written consent is regularly tracked, and legal action will be taken in case of violation.

Other Contents

A Recent CAS Decision in the Scope of European Union Competition Law: FIFA vs. Agents
Newsletter Articles
A Recent CAS Decision in the Scope of European Union Competition Law: FIFA vs. Agents

At the meeting of the Fédération Internationale de Football Association (“FIFA”) held on 16 December 2022, the FIFA Council approved the FIFA Football Agents Regulations (“FFAR”). In the FFAR, various amendments have been made, such as the introduction of a maximum service fee limit that football agents are...

Competition Law 30.09.2023
CJEU Judgment in Super Bock: New Insight on Resale Price Maintenance
Newsletter Articles
CJEU Judgment in Super Bock: New Insight on Resale Price Maintenance

Resale Price Maintenance (RPM) is still considered a hardcore restriction under the recently revised Vertical Block Exemption Regulation (VBER), which means that it cannot benefit from a statutory exemption under Article 101(1) TFEU, unlike certain other types of vertical agreements. However, it has been debated...

Competition Law 31.07.2023
The Relationship Between Economic Entity and Family Ties in Light of Competition Board Decisions
Newsletter Articles
The Relationship Between Economic Entity and Family Ties in Light of Competition Board Decisions

In competition law, it is important to accurately determine the concept of undertaking, especially in terms of mergers and acquisitions. Therefore, the concept of economic entity aims to reveal the economic units covered by the undertakings. The relationship between the concept of economic entity and family ties comes...

Competition Law 31.07.2023
A New Breath of Fresh Air for Competition Investigations from the Constitutional Court
Newsletter Articles
A New Breath of Fresh Air for Competition Investigations from the Constitutional Court

In these days when the Competition Board (“Board”) frequently imposes administrative fines for preventing on-site inspections and both the Competition Authority (“Authority”) and undertakings take legal and technical measures regarding on-site inspections, a striking development has occurred. In its decision...

Competition Law 30.06.2023
Competition Law Practices in the Online Advertising Market
Newsletter Articles
Competition Law Practices in the Online Advertising Market

Online advertising has become an important source for businesses for promoting products and services and meeting consumers, as a result of the rapid development of information technologies and increase in the use of internet. Delivering targeted messages to consumers at the right time through the digital...

Competition Law 30.06.2023
Selective Distribution Systems
Newsletter Articles
Selective Distribution Systems

Selective distribution systems refer to a type of distribution system in which suppliers commit to selling the contracted goods or services directly or indirectly to distributors selected based on specified criteria, while the distributors commit not to sell the said goods or services to unauthorized...

Competition Law 31.05.2023
Final Sector Inquiry Report of the Competition Authority Regarding Fast-Moving Consumer Goods Retailing
Newsletter Articles
Final Sector Inquiry Report of the Competition Authority Regarding Fast-Moving Consumer Goods Retailing

Fast-moving consumer goods is undoubtedly one of the sectors that the Competition Authority has been working most intensively since the COVID 19 pandemic. Among the most important developments of this period was the Sector Inquiry initiated on Fast Moving Consumer Goods (“FMCG”) Retailing...

Competition Law 30.04.2023
Constitutional Court's Evaluation of the Competition Board's Authority to Conduct On-Site Investigations
Newsletter Articles
Constitutional Court's Evaluation of the Competition Board's Authority to Conduct On-Site Investigations

In the decision of the Constitutional Court ("Constitutional Court" or "Court") dated 09.11.2022, numbered 2020/67 E. 2022/139 K. (the "Decision"), the annulment of certain articles of the Law Amending the Law on the Protection of Competition No. 4054 ("Law No. 7246") was requested...

Competition Law 30.04.2023
Gun Jumping in Turkish Competition Law
Newsletter Articles
Gun Jumping in Turkish Competition Law

In Turkish competition law, certain types of mergers and acquisitions are subject to Turkish Competition Board’s (“Board”) approval in order to gain legal validity. Pursuant to Article 7 of the Law No. 4054 on the Protection of Competition (“Law No. 4054”), the Board is competent to define mergers and acquisitions...

Competition Law 31.03.2023
The Problem of Returning the Data Obtained as a Result of Unlawful Notification in Light of the Competition Board Decision
Newsletter Articles
The Problem of Returning the Data Obtained as a Result of Unlawful Notification in Light of the Competition Board Decision

Recently, the Competition Board (the Board) had imposed administrative fines on banks and financial institutions for failing to respond to the request for information within the scope of a preliminary investigation.[i] The request for information that lays the groundwork for the administrative fine imposed by...

Competition Law 28.02.2023
The European Commission Accepts Amazon’s Commitments
Newsletter Articles
The European Commission Accepts Amazon’s Commitments

Amazon, a world-famous company, is an e-commerce company that operates the world’s largest online shopping platform. In the backstage, Amazon is a data-driven company whose retail decisions are mostly driven by automated systems, fueled by the relevant market data. That being said, Amazon has a dual...

Competition Law 31.01.2023
Deletion of WhatsApp Correspondence During On-Site Inspections
Newsletter Articles
Deletion of WhatsApp Correspondence During On-Site Inspections

The right to make on-site inspections is one of the Competition Board’s (“Board”) most important tools for revealing whether Law No. 4054 on the Protection of Competition (“Law No. 4054”) has been violated. The effective use of this authority is quite important in terms of obtaining fruitful results from...

Competition Law 31.10.2022
Amendment on the Regulation of Electronic Commerce: “The Fire of Mount Doom”
Newsletter Articles
Amendment on the Regulation of Electronic Commerce: “The Fire of Mount Doom”

“Harese” is an interesting Arabic word. There is a thorn that camels love very much in the desert. The camel eats the thorn with great greed. So much so that, its mouth bleeds as it eats, but it doesn't stop eating. The taste of the thorn is mixed with the salty taste of its own blood. This mixed taste drives the camel...

Competition Law 30.09.2022
Turkish Competition Board Fines Digiturk
Newsletter Articles
Turkish Competition Board Fines Digiturk

Turkey’s leading pay television service provider, Krea İçerik Hizmetleri ve Prodüksiyon A.Ş. (“Digiturk”), is frequently the subject of complaints made to the Competition Authority (“Authority”). In fact, the Competition Board (“Board”) issues a new decision about Digiturk almost every year. In these decisions...

Competition Law 30.09.2022
A Different Approach to Monetary Fines for Hindering On-Site Inspection: The Decision of the Ankara II. Administrative Court
Newsletter Articles
A Different Approach to Monetary Fines for Hindering On-Site Inspection: The Decision of the Ankara II. Administrative Court

While the scope of Competition Board’s (“Board”) power to conduct on-site inspections has increased with the introduction of Guidelines on Examination of Digital Data during On-site Inspections (“Guidelines”), nowadays the amount of monetary fines imposed on undertakings continue to...

Competition Law 31.07.2022
Hub and Spoke Cartel in Comparative Law
Newsletter Articles
Hub and Spoke Cartel in Comparative Law

The hub and spoke cartel, which is a relatively new type of violation in terms of Turkish competition law, is defined as the indirect exchange of information between two independent undertakings which are horizontal competitors on the supplier or retailer level, through another undertaking...

Competition Law April 2022
The First Settlement Case in Turkish Competition Law
Newsletter Articles
The First Settlement Case in Turkish Competition Law

The settlement mechanism has only recently been introduced to Turkish competition law practice. It entered into force with the amendment made to the Law on the Protection of Competition (“Law”) numbered 4054 on 16.06.2020, and has been in effect for less than two years. In this relatively...

Competition Law April 2022
The E-Marketplace Platforms Sector Inquiry Final Report and What It Brings
Newsletter Articles
The E-Marketplace Platforms Sector Inquiry Final Report and What It Brings

Due to their increasing share in the economy and rapid growth rate, e-marketplace platforms have come under the increasing scrutiny of the Turkish Competition Authority (“Authority”) as well as many competition authorities around the world...

Competition Law April 2022
Amendments Introduced to the Communique Concerning the Mergers and Acquisitions Requiring Competition Board’s Approval
Newsletter Articles
Amendments Introduced to the Communique Concerning the Mergers and Acquisitions Requiring Competition Board’s Approval

Pursuant to the Amendment Communiqué Concerning the Mergers and Acquisitions Requiring the Competition Board’s Approval (“Amending Communiqué”) published in the Official Gazette dated March 4th, 2022 and numbered 31768, certain amendments have been introduced...

Competition Law March 2022
A New Glance at Online Sales: The Competition Board’s BSH Decision
Newsletter Articles
A New Glance at Online Sales: The Competition Board’s BSH Decision

The Competition Board (“Board”) has recently published a reasoned decision in which it evaluated BSH Ev Aletleri Sanayi ve Ticaret A.Ş.’s (“BSH”) request for negative clearance or exemption with regard to its practice of prohibiting authorized dealers from making sales through online marketplaces...

Competition Law March 2022
E-Marketplace Platforms Industry Review Preliminary Report Part 2: “Shahmaran’s Story”
Newsletter Articles
E-Marketplace Platforms Industry Review Preliminary Report Part 2: “Shahmaran’s Story”

Shahmaran, a Mesopotamian myth, is believed to take place in Tarsus. According to the myth, the shah of snakes is the immortal and omniscient "Shahmaran." Shahmaran is described as a beautiful woman living in her cave with her snakes...

Competition Law February 2022
Online Sales Within The Framework Of Competition Law
Newsletter Articles
The Effects of the Recent Decision by the Turkish Competition Board on Market Chains and Their Suppliers
Newsletter Articles
The Effects of the Recent Decision by the Turkish Competition Board on Market Chains and Their Suppliers

During the COVID-19 pandemic, competitive concerns about the pricing behavior of chain markets, manufacturers, and wholesalers engaged in the retail trade of food and cleaning supplies led to an investigation by...

Competition Law January 2022
On-Site Inspections in Light of the Recent Decisions of the Competition Authority
Newsletter Articles
On-Site Inspections in Light of the Recent Decisions of the Competition Authority

When the past decisions and the recent decisions of the Competition Board (“Board”) are examined, a significant increase can be observed in the number of decisions where the Board found hindrance or obstruction of on-site inspections. This situation shows that...

Competition Law December 2021
The European Commission Fines Banks for Participating in a Forex Cartel
Newsletter Articles
The European Commission Fines Banks for Participating in a Forex Cartel

The European Commission began investigating the collusive behavior of Credit Suisse, UBS, Barclays, RBS, and HSBC in the Foreign Exchange (forex) spot trading market in 2019. With the recent press release dated 02.12.2021, the Commission announced that the case is now closed...

Competition Law December 2021
Hub and Spoke Cartels
Newsletter Articles
Hub and Spoke Cartels
Competition Law November 2021
E-Marketplace Platforms Industry Review Preliminary Report Part 1: “Captain, an object is approaching”
Newsletter Articles
E-Marketplace Platforms Industry Review Preliminary Report Part 1: “Captain, an object is approaching”

Digitalization, in particular, necessitates the rewriting of competition law rules. Competition law is at the center all questions regarding e-commerce and digital platforms. The aforementioned platforms, which have become prominent due to innovations in...

Competition Law November 2021
Coca Cola’s Commitments in the Recent Competition Investigation
Newsletter Articles
Settlement Regulation Enters into Force
Newsletter Articles
Settlement Regulation Enters into Force
Competition Law July 2021
Competition Law Concerns Regarding Human Resources Practices
Newsletter Articles
The New Cartel Decision of the Competition Board
Newsletter Articles
The New Cartel Decision of the Competition Board
Competition Law September 2020
Amendments in the Law on the Protection of Competition
Newsletter Articles
Setting Legal Grounds for On-site Inspections
Newsletter Articles
Evaluation of COVID 19 Outbreak in Terms of Turkish Competition Law
Newsletter Articles
The File of Sahibinden.com; A Phoenix Story
Newsletter Articles
The File of Sahibinden.com; A Phoenix Story
Competition Law February 2020
Final and Interim Decisions of the Turkish Competition Board
Newsletter Articles
Second Stage in Facebook File
Newsletter Articles
Second Stage in Facebook File
Competition Law September 2019
European Commission’s Foreign Exchange Spot Trading Cartel Decisions
Newsletter Articles
Expected Second Half of Competition Authority’s 12 Banks Decision
Newsletter Articles
Turkish Competition Board’s Sahibinden.com Decision
Newsletter Articles
Recent Developments in Abuse of Dominance Concerning Online Platforms
Newsletter Articles
New Horizons in Competition Law; Diesel Emissions Scandal
Newsletter Articles
Recent Developments in the Right of Access to Files
Newsletter Articles
Cards are being redistributed in the Turkish Beer Market
Newsletter Articles
The Recent Motor Vehicles Insurance Decision of the Competition Board
Newsletter Articles
Selective Distribution Systems under the Light of Coty Decision
Newsletter Articles
Competition Authority’s Sector Inquiry Report on Television Broadcasting
Newsletter Articles
Excessive Pricing
Newsletter Articles
Excessive Pricing
Competition Law June 2017
Amazon Decision and E-Book Commitments
Newsletter Articles
Amazon Decision and E-Book Commitments
Competition Law June 2017
Umbrella Effect within the Framework of Private Competition Enforcement
Newsletter Articles
Tüpraş Decision and the Rebate Systems
Newsletter Articles
Tüpraş Decision and the Rebate Systems
Competition Law September 2016
Important Reason in Terms Of Share Transfer Restrictions
Newsletter Articles
Booking.com Decision
Newsletter Articles
Booking.com Decision
Competition Law January 2017
Price / Margin Squeeze
Newsletter Articles
Price / Margin Squeeze
Competition Law November 2016
Recent Problems in Electricity Distribution Sector: ELDER Decision
Newsletter Articles
Intellectual Property Rights As Capital in Kind
Newsletter Articles
Right To Request Information Of The Shareholders in Joint Stock Companies
Newsletter Articles
Affected Market
Newsletter Articles
Affected Market
Competition Law August 2015

For creative legal solutions, please contact us.