Facebook brings the UK back to the EU. The commercial practices of the popular social network are being investigated in Brussels as well as in London, and the two different antitrust organizations could work together against the American web giant. The British Authority for Markets and Competition (Cma) has decided to get clear on the activity of the US company on the same day as the European Commission announces the opening of an in-depth investigation into alleged unfair competition activities in the use of user and advertiser data to facilitate your Marketplace buying and selling service.
When they advertise their services on Facebook, companies, which also compete directly with Facebook, can provide them with data of commercial value. Facebook could then use this data to compete with the companies that provided it. Brussels has doubts about this, explains the head of competition, Margrethe Vestager. “Facebook is used by nearly 3 billion people on a monthly basis and nearly 7 million companies advertise on Facebook in total.” There are therefore large amounts of data passing through the social network. “We will analyze in detail whether this data gives Facebook an undue competitive advantage, particularly in the online classifieds sector.”
The launch of an in-depth investigation follows a preliminary check which, instead of dispelling doubts, has increased them. The twelve-star antitrust fears Facebook could distort competition for online classifieds services. More specifically, it is believed that Facebook could receive precise information on user preferences from the advertising activities of its competitors and use this data to adapt Facebook Marketplace and thus guarantee itself an advantage.
Facebook faces fines for violating EU competition rules on anti-competitive agreements between companies and abuse of dominant position. The Commission has decided to conduct the in-depth investigation ‘as a matter of priority’, which is also why it has decided to cooperate with London. work closely with London. “The European Commission will try to work closely with the CMA as independent investigations develop,” they confirm in Brussels.
Immediate response of the social network that through a spokesperson says: «We are constantly working to develop new and better services that can meet the evolving needs of people who use Facebook. Marketplace and Dating offer people more choice and both products operate in a highly competitive environment, which features other major players. We will continue to cooperate fully in the investigations to show that they have no basis ». After Brexit, Facebook brings the UK back to the EU.