Facebook parent company* has given key assurances to UK antitrust authorities to address concerns about how the company is using advertising data to benefit its own products. To do this, the company will restrict the use of advertising data from other companies for its Facebook service.* Marketplace, which according to Meta*This is done by introducing “new technical systems“.
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The news broke earlier in the week as Meta* announced the sale of GIF platform Giphy for $53 million, three years after it was bought for $400 million. The sale follows an order from the Competition and Markets Authority (CMA) last October. In April, the CMA also blocked a deal for Microsoft to buy Activision for $68.7 billion, prompting Microsoft to file a lawsuit challenging the UK regulator’s decision.
Facebook* Marketplace is an online classifieds service launched in 2016 that allows Facebook users to do this* buy and sell almost anything. Considering this meta* may obtain information about user interests through their online Facebook ads*the CMA claims that this gives meta* They gain an unfair advantage by allowing the display of more relevant products in their users’ marketplace feed, to the detriment of the platform’s advertisers. The European Commission (EC) and the CMA have announced a joint effort to investigate this meta-practice* In June 2021 and August, the CMA announced the opening of a formal investigation. Four months later, the EC followed suit.
However, the CMA has now signaled for the first time that it is ready to drop the case after receiving concrete promises from Meta.*. This includes restricting the use of other companies’ advertising data for their Facebook service.* Marketplace, which according to Meta*This is done by introducing “new technical systems“. In addition, meta* said it would educate staff not to use advertising data when developing new products for use in the UK market that could compete directly with advertisers.
The CMA has stated that it intends to make these commitments. This includes giving advertisers the ability to opt-out of having their data used to improve the Facebook advertising platform.* marketplace. Following this announcement, a one-month consultation period will begin, ending on June 26th. If the UK regulator’s expectations are met, this will effectively close the investigation.
* It is included in the list of public associations and religious organizations for which the court made a final decision to dissolve or prohibit activities on the grounds provided for in Federal Law No. 114-FZ of July 25. 2002 “On Countering Extremist Activities”.
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