Turkish Competition Authority to fine Meta for Non-Compliance

On March 18, 2024, the Turkish Competition Authority (“TCA”) took action against Meta Platforms, Inc., (“Meta”), by issuing a provisional measure to cease the transfer of data between Instagram and Threads and imposed a daily administrative penalty of approximately TRY 4.8 million for Meta's failure to adequately address antitrust concerns.

Turkish Competition Board’s (“Board”) decision to impose provisional measures and administrative fines was based on the findings of the investigation initiated in December 2023. This investigation focused on whether Meta violated Article 6 of Law No. 4054 by integrating the Threads application with Instagram. To mitigate potential irreversible harm pending the investigation's conclusion, the Board issued a provisional injunction to prevent Meta from merging data from Threads profiles with Instagram accounts without providing users with the option to consent.

Key points highlighted by the Board include Meta’s extensive and detailed dataset, the scale and diversity of its user base, the challenges posed to competitors due to the resource allocation, and its ecosystem approach, allowing it to leverage market dominance in various sectors.

The decision also referred to the Digital Markets Act (“DMA”) of the European Union which prohibits gatekeeper companies from combining data among different services without the explicit consent of end users. With the launch of Threads in the European Union, it was inferred that Meta had fulfilled its obligations under the DMA, and Threads had been aligned with the DMA.

Additionally, the Board also referenced its prior decision dated October 20, 2022, regarding the abuse of dominance through combining of data from Meta's primary services, alongside to the German Competition Authority's review of Facebook/Oculus. It was emphasized that prompt action is necessary to address competition problems in digital markets to prevent irreversible consequences.

In reaction to the Board's interim order, Meta announced on April 15, 2024, that it would temporarily cease the availability of Threads in Türkiye from April 29 to ensure compliance.

On March 18, 2024, the TCA made an announcement which highlighted Meta's failure to fulfil essential measures to address anti-competitive practices linked with WhatsApp and other Meta services addressed on the Board's decision from October 20, 2022.

One of the stipulations from the Board was for Meta to obtain renewed consents from users who had previously agreed to data merging across Facebook, Instagram, and WhatsApp. The consent interface needed to not only seek confirmation but also clearly inform users of their option to decline consent while still using the applications. The Board deemed Meta's provided consent interface inadequate, lacking in transparency, sufficient information, and seemingly biased towards encouraging user consent for data merging.

Despite an extended deadline for compliance until December 9, 2023, Meta was deemed non- compliant by December 11, 2023, resulting in the imposition of a daily administrative fine starting from December 12, 2023, based on Meta's gross revenue for 2022. This daily fine will continue until Meta submits a remedial measure acceptable to the TCA.

The TCA’s decision to impose a daily fine on Meta is one of its toughest actions yet, signaling a firm stance on fair competition. This move serves as a strong warning to all digital companies in Turkey to comply with competition laws. Meta's situation underscores the importance of following regulations closely to avoid facing similar penalties in the future.