The UK Competition and Markets Authority (CMA) announced changes to Meta’s obligations on Tuesday (20 August) approvedThis concerns the use of customer data for advertising purposes, the authority said.
Meta, the parent company of Facebook, Instagram and WhatsApp, proposed a new approach to ensure that data is not used to improve their marketplace without them having to opt in or out.
Consent allows Meta to access a user’s advertising data to improve Facebook Marketplace. If advertisers opt out, Meta may not use the data for this purpose.
The company plans to roll out the new method later this year, ensuring that all advertisers can continue to run ads on Facebook Marketplace without fear that their data will be used to improve the marketplace.
The UK regulator is responsible for promoting competition and protecting consumers from unfair commercial practices. After consulting with advertisers and users of Facebook Marketplace, the regulator found that the company’s changes go beyond the original commitments and will not cause any disadvantages for advertisers. Therefore, the authority approved the proposed changes.
The British regulator began its Investigation in 2021. They wanted to determine whether the platform had an unfair advantage due to its data collection and use practices.
In 2022, the authority asked the internet giant to limit its use of advertisers’ data to prevent it from gaining an unfair advantage on Facebook Marketplace.
Meta could have gained an advantage by using advertisers’ data to improve Facebook Marketplace and make it more attractive compared to its competitors. The insights gained from competitors’ data could have improved the marketplace’s features and performance and given the company an edge over rival platforms.
Last year, Meta agreed to limit how advertisers use their data to ensure the company doesn’t gain an unfair advantage before revising its commitments. That included allowing Facebook Marketplace competitors who advertise on Meta platforms to opt out of having their data used to improve the feature.
In 2022, Amazon also committed not to use data from competing sellers on its marketplace to create a fair environment for third-party sellers.
Meanwhile, Meta is facing several challenges in the EU.
The European Commission is investigating the company’s compliance with the Digital Services Act (DSA) and the Digital Markets Act (DMA). The investigation focuses on data access, election surveillance and competition practices.
The company is also involved in a legal dispute with the Commission over an annual supervisory fee and is under scrutiny for possible violations of child protection laws.
[Bearbeitet von Rajnish Singh]
