BRUSSELS -
The European Commission has opened an antitrust investigation to assess whether Facebook has violated the competition rules by using advertising data collected
in particular from advertisers to compete with them in markets where Fb is active, such as classified ads.
The investigation will also investigate whether Facebook connects its ad service, i.e. Marketplace, to the social network, violating EU competition rules.
"After a preliminary investigation, the Commission fears that Facebook will distort competition for the online ad service," writes the Commission. In particular, it could use data obtained from competing providers operating on its platform to help Marketplace beat their competition. Facebook may, for example, receive accurate information about its users 'preferences from competitors' ad activities, and use that data to adapt Marketplace.
"Facebook is used by nearly 3 billion people on a monthly basis and by nearly 7 million companies that advertise. It collects huge amounts of data on user activity, allowing it to target specific customer groups. They give an undue competitive advantage
particularly in the online classifieds sector. In today's digital economy, data should not be used in ways that distort competition, "
said EU Commission Vice President, Head of Competition, Margrethe Vestager.
The Commission will also examine whether the way the Marketplace is integrated into the social network constitutes a form of bonding that gives it an advantage in reaching customers and closes it to competition.
"We will continue to fully cooperate on investigations to prove they have no basis.
We are constantly working to develop new and better services that can meet the evolving needs of people who use Facebook. Marketplace and Dating offer people more choice and both products operate in a a highly competitive context, which presents other major players ": this is how a spokesperson for Facebook comments on the antitrust investigation opened by the EU Commission.