It’s so long that Facebook is out of controversies. And yet, advertisement data lands Facebook into another trouble, as Facebook antitrust investigation. The UK and EU competition Watchdog express concerns about Facebook’s ads policy. The Social Networking site is using user’s data to gain the unfair advantage of rivals. However, the European Commission and the Competition and Market are closely overseeing the matter. The competition watchdogs are also looking to identify any information useful to Facebook. The EU Commission examines if Facebook is in violation of any EU rules. Facebook collects data from advertisers and uses it against their rivals to offer classified ads. Exploiting user’s data helps Facebook to generate tens of Billions in ad revenue.
Facebook Antitrust Probe Seeks Violation of EU Competition Rules
Competition and Market Authority says Facebook uses this information for its own services. Platforms like Facebook Marketplace are largely run on ads. Facebook says, it is fully compliant and will coordinate with the authorities. However, it also says that it would show that the investigation will have no merit basis. Facebook also says that Marketplace and dating app operates in a competitive market. Taking advantage of such situations hampers the growth of small businesses. Also, it makes the business environment difficult for those with limited resources. Data shouldn’t be used to distort competition.
Facebook collects the data of users from services such as the single sign-on option. People access different websites, platforms, and applications by entering their Facebook credentials. Using the data, Facebook competes with businesses and people trading at Facebook Market place. EU has opened an antitrust investigation against Facebook. The investigation will unravel if Facebook has violated any EU competition rules. Collecting the data of advertisings from users and using it in the marketplace. This ad space is termed classified ads where Facebook is active. Also, the investigation will examine if Facebook ties its online Marketplace with Social Network.