Meta, Antitrust fines of 3.5 million for unfair commercial practices
According to Agcm, Facebook and Instagram did not clearly explain the use of data for commercial purposes and the rules for complaints
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Key points
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The Antitrust Authority has imposed a fine of 3.5 million on Meta for unfair commercial practices. This was announced by the Competition and Market Authority, explaining that 'in the Instagram registration process, users were not provided with clear information on the collection and use of their data for commercial purposes'. Moreover, it continues, 'in the case of suspension of Facebook and Instagram accounts, no useful communications were provided for possible objections'.
The commercial practices for which Meta Platforms Ireland Ltd. and its parent company Meta Platforms Inc. were sanctioned are two and concern the management of social network accounts Facebook and Instagram. The Agcm found that Meta, in violation of Articles 20, 21, and 22 of the Consumer Code, did not immediately inform users registered with Instagram via the web of the use of their personal data 'for commercial purposes'.
Furthermore, the Authority 'found that, in violation of Article 20 of the Consumer Code, Meta did not accurately manage the suspension of its users' Facebook and Instagram accounts. In particular, Meta did not indicate how it decides to suspend Facebook accounts (whether as a result of an automated or 'human' check) and did not provide Facebook and Instagram users with information on the possibility of contesting the suspension of their accounts (they can turn to an out-of-court dispute resolution body or a judge)'. Finally, 'it provided a short deadline (30 days) for the consumer to contest the suspension'. These two practices, the Agcm pointed out, 'were terminated by Meta in the course of the proceedings'.
Meta's reply
.Meta's response was not long in coming: 'We disagree with the decision taken by the AGCM and are considering what action to take. - said a spokesperson for Zuckerberg's company - As of August 2023, we have made changes for Italian users that address the issues raised by AGCM. We have made it even clearer how we use data to show personalised ads on Instagram and provided users with additional information and options to appeal if their account is suspended. Instead, we welcome AGCM's recognition of the effectiveness of our solutions to help people get their accounts back."
