Meta provides digital display advertising services. These are a type of digital advertising where advertisers pay online companies (for example, social media platforms) to display advertising on the websites or apps.
In June 2021, the Competition and Markets Authority launched an investigation under Chapter II of the Competition Act 1998 into suspected breaches of competition law by Meta (formerly Facebook). The investigation concerns Meta’s conduct in relation to the collection and/or use of data in the context of providing online advertising services and its single sign-on function and whether this resulted in a competitive advantage over downstream competitors if it used that data for its other products. The CMA said there was some evidence that this had happened in relation to Facebook Marketplace.
Meta committed to limiting how it uses advertising customers’ data to prevent it getting an unfair advantage. Competitors of Facebook Marketplace that advertised on Meta platforms could ‘opt out’ of their data being used to improve Facebook Marketplace. Meta was required to implement technical systems to prevent the use of certain advertiser data in the operation of Facebook Marketplace, and to ensure that employees refrain from using certain advertising data for product development in competition with advertisers.
The CMA has now accepted proposals to vary Meta’s commitments regarding the way it uses customers’ advertising data.
The varied commitments give Meta an additional way to implement the data controls set up in the original commitments. Meta currently plans to adopt this new approach meaning that all advertisers can retain the ability to put adverts on Facebook Marketplace and be certain that their advertising data is not being used to improve Facebook Marketplace, without having to opt in or out.
Having consulted advertisers and Facebook Marketplace users on the proposals, the CMA has concluded that the revisions go above and beyond the original commitments and would not leave any advertisers worse off. As a result, the CMA has accepted the proposed variation under section 31A of the Competition Act 1998.
