Menlo Park’s Facebook Marketplace keels over EU & UK antitrust crosshairs

by   |  VIEW 612

Menlo Park’s Facebook Marketplace keels over EU & UK antitrust crosshairs

In what could be contemplated as a new assault on Facebook’s revamped business model, both EU and UK antitrust authorities had formally launched probes into Facebook's Marketplace over charges that the Menlo Park, California-based social networking Goliath, might be using customer data in a bid to attain an unfair advantage in competition with advertisers.

In point of fact, separate moves from UK and EU antitrust regulators to initiate investigations on Facebook Inc to determine its role in abuse of customer data to better compete with companies from which it also gathers data, would likely to inflict deeper wounds into the social networking mogul which has been facing off similar litigations in the United States, too, suggested analysts.

The European Commission, in tandem, would probe whether the online advertisement industry megalith had violated EU competition legislations to gain unfair leverage on its Marketplace classified business, while the British regulators would reportedly probe on whether the company had been exploiting the same tactics at its dating offerings.

Facebook in EU & UK antitrust crosshairs

Meanwhile, followed by the announcement on Friday, European Competition Commission Chief Margrethe Vestager whose crusade against global tech titans had stapled €8 billion so far in punitive measures on Google LLC and launched probes on Amazon and Apple, said “In today's digital economy, data should not be used in ways that distort competition.

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”.

Facebook’s arketplace, which is being used on more than 70 countries almost as an e-commerce platform without proper vigilance, had been facing off EU antitrust regulators’ scrutiny since 2019.