From Europe, both U.K’s Competition and Markets Authority, CMA, and the European Commission, EC, have reportedly consorted to launch an antitrust probe against Mark Zuckerberg’s world.
The European agency claims that Facebook breeds an unfair marketplace where competition is overruled by its social media dominance.
Both agencies ‘ claims appear to be affirmative about Facebook’s unethical operations in the ads marketplace. This investigation will confirm if Facebook collects unauthorized ad data from third-party advertisers to compete with a higher advantage.
Per the basics of the investigation, it worth noting that Facebook is liable to access ads providers’ data via their respective digital advertising services or the single sign-on option.
While the European Commission’s competition head Margrethe Vestager confirms Facebook controls 70% of its ad marketplace. “Facebook collects vast troves of data on the activities of users of its social network and beyond, enabling it to target specific customer groups.”
“We will look in detail at whether this data gives Facebook an undue competitive advantage in particular on the online classified ads sector,” Margrethe noted it is an unethical practice to engage in competition with your customers — via Facebook ad marketplace “where people buy and sell goods every day, and where Facebook also competes with companies from which it collects data.”
Margrethe made it worth noting that Facebook collects a summarised details about the users that receive these ads. “Facebook access custom ad preferences from its competitors’ advertisement activities and use such data to adapt Facebook Marketplace,”
On the other hand, the CMA CEO, Andrea Coscelli noted that the Facebook dating platform exclusive for Europeans will also be investigated as its parent company has reportedly violated ad policies. “We intend to thoroughly investigate Facebook’s use of data to assess whether its business practices are giving it an unfair advantage in the online dating and classified ad sectors.”
The current lawsuit probing Facebook intends to regulate the industry, focusing on both big tech companies and startups as well that are liable to discomfort customers with their product business, according to Andrea, CMA’s chief executive.
While Facebook didn’t contradict the agency’s claims while promising to provide necessary tools to bolster the investigation on both its social media and dating service.
Facebook also noted that its services have focused on providing multiple alternatives that bolster its ads marketplace and social business — a vast ecosystem suitable for global users.