Facebook: The European Commission opened on Friday (4) a formal antitrust investigation with the aim of verifying whether Facebook broke the block’s competition rules. The suspicion is that the company has used data collected from advertisers to compete with them in classified ads.
In this in-depth investigation, authorities still want to assess whether the company led by Mark Zuckerberg is linking the online classifieds service Facebook Marketplace to the social network. This is also considered a violation of European Union antitrust law.
According to the regulator’s executive vice president, Margrethe Vestager, big tech collects data from nearly three billion people and seven million advertising companies. “We’ll see in detail whether this data gives Facebook an undue competitive advantage, particularly in the online classified ad industry,” she explained.
A spokesman for the social network told Bloomberg that the company is fully cooperating with the investigations and will demonstrate that they have no merit. “We are always developing new and better services to meet the growing demand from users,” commented the representative.
In addition to the poll opened by the European Commission, the UK Competition and Markets Authority (CMA) has also started its own investigation into Facebook’s use of data. The agency wants to examine the relationship between the Marketplace and the online dating service it launched in Europe last year.
CMA’s aim is to investigate whether data collected from advertisers is being used to give the company’s dating platform illegal advantages over the competition. The single sign-on feature, which allows you to sign in to third-party apps and services with Facebook credentials, will also be discussed.
Regulatory authorities in the European Union and the United Kingdom have said they will work together on these investigations.