Competition regulators in the UK and European Union have both launched investigations into Facebook, examining whether the social media giant is breaking competition rules.
The UK’s Competition and Markets Authority (CMA) said it will look into whether Facebook is abusing a dominant position in the social media or digital advertising markets, by using advertising data to gain an unfair advantage in the classified ads and online dating sectors.
The CMA will examine if Facebook has unfairly used the data gained from its digital advertising services, and from its single sign-on service (Facebook Login), to benefit its own services.
In particular, it will look at Facebook Marketplace (which runs classified adverts), and its dating profile service Facebook Dating.
Andrea Coscelli, chief executive of the CMA, says the regulator will conduct a thorough investigation.
“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.
“Any such advantage can make it harder for competing firms to succeed, including new and smaller businesses, and may reduce customer choice.