Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Facebook's Marketplace in EU and UK antitrust crosshairs

Facebook's Marketplace in EU and UK antitrust crosshairs

Europe and Britain launched formal antitrust investigations into Facebook (FB.O) on Friday to determine if the world's largest social network was using customer data to unfairly compete with advertisers, in a new assault on its business model.

Europe and Britain launched formal antitrust investigations into Facebook (FB.O) on Friday to determine if the world's largest social network was using customer data to unfairly compete with advertisers, in a new assault on its business model.

The separate moves open new fronts in Europe against the tech giant, whose platforms are used regularly by almost 3 billion people and which is accused of using its vast trove of ad data to better compete with companies from which it also collects data.

The European Commission will assess whether Facebook violated EU competition law to unfairly compete in its Marketplace classified business, while the British regulator will also look at whether it is using the same tactic in its dating offering.

"In today's digital economy, data should not be used in ways that distort competition," European Competition Commissioner Margrethe Vestager said.
Vestager has already slapped more than 8 billion euros ($9.7 billion) in fines on Alphabet (GOOGL.O) unit Google and is also investigating Amazon (AMZN.O) and Apple (AAPL.O). The UK regulator is also examining Google and Apple.

Launched in 2016, Facebook's Marketplace is used in 70 countries to buy and sell items and has been under EU scrutiny since 2019.

"We will look in detail at whether this data gives Facebook an undue competitive advantage in particular on the online classified ads sector, where people buy and sell goods every day, and where Facebook also competes with companies from which it collects data," Vestager said.

Online commerce has become ever more important during the COVID-19 pandemic and Facebook boss Mark Zuckerberg said in April that more than 1 billion people were visiting the Marketplace buying and selling service a month.
The EU probe confirmed what a person familiar with the situation had told Reuters on May 26. Facebook said the investigations were without merit.

SEPARATE BUT COOPERATING


The EU executive will also investigate whether Facebook ties Marketplace to its social network, giving it an advantage in reaching customers and threatening rival online classified ad services through its scale.

The UK investigation is broader, looking at how Facebook collects data from advertisers and the single sign-on that gives access to other websites with a Facebook login, and how that can benefit both Marketplace and the Facebook Dating business.

The investigations are separate but will cooperate.

"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 UK Competition and Markets Authority (CMA) Chief Executive Andrea Coscelli said in a statement.

"Any such advantage can make it harder for competing firms to succeed, including new and smaller businesses, and may reduce customer choice," Coscelli said.

Governments around the world are looking at strengthening the regulation of tech firms that have become more powerful during the COVID-19 pandemic. G7 finance ministers are examining new tax laws to target multinationals.

Britain's competition regulator is launching a Digital Markets Unit to better regulate tech giants, with a legally binding code that is backed up by the threat of fines of up to 10% of turnover.

Facebook said it would cooperate fully with both the EU and UK investigations "to demonstrate that they are without merit".

"Marketplace and dating offer people more choices, both products operate in highly competitive environment with many large incumbents," the company said in a statement.

The two investigations announced on Friday are just the latest regulatory challenge facing the Californian group.

On Thursday it bowed to French pressure, offering to provide its partners with clear and objective conditions of access to advertising inventories and ad campaign data following a complaint three years ago.

The German cartel office issued an order in February 2019 to curb Facebook’s collection of data from users, triggering a prolonged court battle that continues.

($1 = 0.8255 euros)

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×