Facebook’s parent Meta has given key assurances to U.K. antitrust regulators as it looks to counter concerns over how it uses advertising data to benefit its own products.
The news comes in the same week as Meta revealed it was selling GIF platform Giphy for $53 million three years after buying it for $400 million, following a final divestment order issued by the Competition and Markets Authority (CMA) last October. The CMA also recently blocked Microsoft’s $68.7 billion bid for Activision.
At the heart of this specific issue is how Meta is able to leverage data from its core social network to make content display and recommendation decisions in Facebook Marketplace, an online classifieds service launched back in 2016 that allows Facebook users to buy and sell just about anything. Given that Meta can garner insights on users’ interests through their online ad interactions on Facebook, the CMA argues that this gives Meta an unfair advantage by allowing it to display more relevant items in their users’ Marketplace feed — to the detriment of advertisers elsewhere on the platform.
The European Commission (EC) and the CMA announced separate but collaborative efforts to investigate Met …
