Meta’s revised commitments on ad data use gets green light from UK authority

UK-  Meta, the parent company of Facebook, Instagram, and WhatsApp, proposed a new approach to ensure all advertisers’ data is not used to improve its marketplace, without requiring them to opt in or out.

Opting in allows Meta to access a user’s advertising data to improve Facebook Marketplace. By opting out, Meta is not allowed to use the data for that purpose.

The company plans to adopt the new method this year, which ensures that all advertisers can continue placing ads on Facebook Marketplace, without worrying that their data will be used to improve it.

After consulting with advertisers and Facebook Marketplace users, the CMA, the UK body responsible for promoting competition and protecting consumers from unfair business practices, determined that the revisions by the company exceed the original commitments, and will not cause any disadvantages to advertisers. Consequently, the authority approved the proposed changes.

“We welcome the CMA’s decision to close its investigation into Marketplace on the basis of the commitments offered by Meta to put in place systems and controls designed to confirm and validate that advertiser data from competitors is not used in Marketplace,” a Meta spokesperson said last November when the CMA announced it was dropping the investigation.

The European Commission sent a request for information to Meta under the Digital Services Act (DSA) on Friday (16 August), seeking details on compliance with data access and election monitoring requirements.

The CMA began its investigation in 2021 to determine if the platform had an unfair advantage due to its data collection and usage practices.In 2022, the authority required the tech giant to limit its use of advertisers’ data to prevent it from gaining an unfair advantage on Facebook Marketplace.Meta could have gained an advantage by using advertisers’ data to enhance Facebook Marketplace, making it more appealing, compared to its competitors. Insights from competitors’ data could have improved the marketplace’s features and performance, giving the company an edge over rival platforms.

Last year, Meta agreed to limit its use of advertising customers’ data to ensure it did not gain an unfair advantage, before revising its commitments. This included allowing competitors of Facebook Marketplace who advertised on Meta platforms, to opt out of their data being used to enhance the feature.In 2022, Amazon also pledged not to use data from competing sellers on its marketplace, to maintain a fair environment for third-party vendors.The Commission opened on Thursday (14 July) a public consultation after Amazon committed to not using data of third-party sellers for its own benefit as a retailer, anticipating a key obligation of an upcoming EU law.Meanwhile, Meta is facing several challenges in the EU.

The European Commission is investigating the company’s compliance with the Digital Services Act (DSA) and Digital Markets Act (DMA), focusing on data access, election monitoring, and competition practices.

The company is also involved in a legal dispute with the Commission over an annual supervisory fee and is under scrutiny for potential violations related to protecting minors.

Source: Euractiv