Germany competition regulator extends scope of proceedings against Facebook-Oculus linkage News
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Germany competition regulator extends scope of proceedings against Facebook-Oculus linkage

Germany’s federal competition regulator, the Bundeskartellamt, announced Thursday that it is extending the scope of proceedings against Facebook in relation to the link between Oculus and Facebook after changes to German competition law. The extension will include an assessment of whether Facebook is subject to new legislation under the German Competition Act, and, if so, whether the link between Facebook and Oculus can be assessed under the legislation.

The 10th amendment to the German Competition Act came into effect on January 19 and included the new section 19a that allows the Bundeskartellamt more discretion in intervening when large digital companies threaten the competition market. The Act also extends protection to companies that are largely dependent on the digital company, even if they are not small or medium-sized enterprises.

In announcing the extension in proceedings against Facebook, Andreas Mundt, President of the Bundeskartellamt, found:

The new possibilities for intervention in the case of digital companies require the business to be of “paramount significance for competition across markets”. An ecosystem which extends across various markets–an almost unchallengeable position of economic power–is particularly characteristic in this respect. In view of Facebook’s strong market presence with the eponymous social network, WhatsApp and Instagram such a position may be deemed to exist. This is the first case in which we are putting the new provisions to use.

The Bundeskartellamt originally initiated proceedings against Facebook in relation to the Facebook-Oculus link in October.

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