Antitrust opens an investigation against Meta: “Possible abuse of economic dependence on Siae”

MILAN – L’Guarantor Authority for competition and the market has opened an investigation against Half to ascertain an alleged abuse of economic dependence in the negotiation with Siae of the stipulation of the license to use the music rights on its platforms.

In particular, writes the Authority, Meta may have unduly interrupted the negotiations for the renewal of the expired contract, also eliminating the musical content protected by Siae from its platforms social and would not have provided the company with the information necessary to carry out the negotiations in full compliance with the principle of transparency and fairness.

According to the Authority, Meta could have abused the contractual imbalance it benefits from by asking SIAE to accept an inadequate economic offer, without however providing the appropriate information to evaluate its effective fairness. As a result of the breakdown in negotiations, Meta has delisted from the platforms social the musical contents protected by Siae so that they were no longer usable by users. The Authority believes that the hypothesized abuse of economic dependence could have a significant impact on the protection of competition in the markets concerned and cause serious damage to consumers.

This conduct could not only significantly compress SIAE’s competitive capacity on the markets concerned, but also prevent the authors it represents – a significant part of those active in Italy – from reaching the increasingly broader category of users who use the platforms social. Meta’s behavior could also affect authors represented by other companies (collecting societies) and who are co-owners of the rights together with authors protected by Siae. In addition, the obstacle to accessing musical content on Meta’s platforms could also have negative effects for the remuneration of related rights of producers of musical works and all other legal positions protected under the law on the right to ‘author.

Furthermore, these abusive practices could considerably limit the choice of consumers who would be deprived of the possibility of using the works protected by SIAE, an important component of the Italian and international musical offer.

At the same time as the preliminary investigation, the Antitrust also started the procedure to adopt any precautionary measures former art. 14-BIS of the law n. 287/1990. The interruption of the negotiation between Meta and Siae, in fact, could immediately affect the competitive dynamics between the various subjects that make up the market chain of the intermediation of musical works copyright. Hence the need for a precautionary intervention that guarantees the reactivation of a negotiation process between Meta and Siae in compliance with the principles of good faith, transparency and fairness.