Italy Fines Meta More Than $5 Million for Unfair Commercial Practices

Italy's antitrust regulator has issued a penalty order against Meta, the parent company of Instagram and Facebook, for alleged non-compliance with transparency standards and inadequate user data management.

Italy Fines Meta Over Alleged 'Unfair Commercial Practices'

According to AFP, Italy's AGCM competition watchdog fined Meta amounting to 3.5 million euros ($3.8 million) for engaging in what it alleged to be "unfair commercial practices," particularly related to its handling of user data on Instagram and Facebook.

The AGCM said Meta failed to promptly inform users registered on Instagram via the web about the commercial use of their personal data. Meta's management of account suspensions on both social media platforms was also flagged as deficient.

The AGCM highlighted Meta's failure to clearly inform users on how the suspension process was determined, whether through automated or manual review, and the absence of guidance on contesting such suspensions through alternative dispute resolution mechanisms or legal channels.

Furthermore, the Italian watchdog deemed Meta's imposition of a short 30-day timeframe for users to challenge account suspensions inadequate.

Despite these findings, the AGCM acknowledged that Meta had made modifications to its practices since the commencement of the investigation.In response to the penalty, Meta disagreed with the decision and said it is currently evaluating its options.

The company highlighted its efforts to address the concerns raised by the authority, particularly regarding enhancing transparency regarding data usage for advertising on Instagram and providing users with improved information and options to appeal account suspensions.

Meta welcomed the AGCM's acknowledgment of the efficacy of its tools in assisting users in regaining access to their accounts.

Italy Fines 2 Amazon Companies

AGCM has previously fined two Amazon companies 10 million euros ($10.6 million) for alleged unfair commercial practices related to online transactions.

The AGCM's investigation has unveiled the practice of favoring the "recurring purchase" option over the "one-time purchase" alternative on Amazon's Italian platform, which the authority views as constraining consumer autonomy and infringing on their decision-making freedom.

Through its inquiry, the AGCM discovered that both Amazon's directly sold items and those offered by third-party vendors were subject to this preference-setting maneuver.

According to the Italian watchdog, by automatically defaulting to the recurring purchase choice, consumers might unwittingly commit to repetitive purchases, potentially leading to unnecessary transactions and hindering their ability to make well-informed choices.

The AGCM asserted that this approach significantly infringes upon consumer freedom. Given Amazon's prominent position in the e-commerce landscape, the AGCM holds the company to a high standard of designing digital interfaces that empower consumers to navigate purchasing processes freely and with adequate information.

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