Meta Restricts Data Usage to Address UK Concerns

Facebook's parent company, Meta, has provided significant assurances to U.K. antitrust regulators to address concerns regarding its utilisation of advertising data to favor its own products. These measures come as Meta faces scrutiny over allegations of leveraging user data from its social network to influence content display and recommendations on Facebook Marketplace. These commitments from Meta signal a potential resolution to the ongoing investigation.

As part of the commitments made to the CMA, Meta has agreed to implement “new technical systems” to enable advertisers to opt-out of having their advertising data utilised for the development of Facebook Marketplace. Furthermore, Meta has pledged to train its staff to ensure that advertiser data is not utilised in the creation of new products that may directly compete with advertisers in the U.K. market. These proactive steps aim to reduce the perceived advantage Meta holds by leveraging user interests and preferences obtained through online ad interactions on Facebook.

While the CMA has not yet officially accepted these commitments, it has indicated its inclination to do so. If the commitments are ultimately approved, the CMA will appoint a monitoring trustee to ensure Meta’s adherence to the agreed-upon measures. Michael Grenfell, the CMA’s director of enforcement, emphasised the potential benefits for U.K. businesses. “Reducing the risk of Meta unfairly exploiting the data of businesses who advertise on its platform for its own competitive advantage could help many UK businesses who advertise there. We are now consulting on these commitments which we believe, at this stage, will address our concerns”, Grenfell said.

The CMA has initiated a month-long consultation period, closing on June 26, to gather feedback before making a final decision.

The investigation into Meta’s data practices was initiated jointly by the CMA and the European Commission (EC) in June 2021. The CMA confirmed its intent to proceed with a formal investigation in August, followed by the EC’s announcement four months later. The CMA’s concerns centered on potential anti-competitive behaviour stemming from Meta’s access to user data and its subsequent impact on Facebook Marketplace.

Meta’s commitment to restricting the usage of ad data in Facebook Marketplace represents a significant step towards addressing the U.K. antitrust concerns surrounding the company. By allowing advertisers to opt-out and implementing internal training programs, Meta aims to level the playing field and assuage fears of unfair advantage. The ongoing consultation period provides an opportunity for interested parties to provide input, ultimately shaping the final decision of the CMA. As the investigation nears its conclusion, the outcome will have implications not only for Meta but also for the broader digital advertising landscape in the U.K.