CMA Investigates Meta Over Suspected Anti-Competitive Use of Data

The UK's Competition and Markets Authority (CMA) has launched an investigation into Meta (formerly Facebook) under Chapter II of the Competition Act 1998. The investigation concerns Meta's conduct related to the collection and use of data in providing online advertising services and its single sign-on function.

Specifically, the CMA will examine whether Meta's practices around data give it an unfair competitive advantage over other players in the market for online advertising and online dating services that are downstream from Meta's own services. The investigation follows concerns that Meta may be abusing its market position through its data collection and use policies, potentially creating an unlevel playing field for rivals by restricting their ability to compete.

Andrea Coscelli, Chief Executive of the CMA, stated: "We intend to thoroughly investigate Facebook's use of data to assess whether its business practices are giving it an unfair advantage in the online dating and classified ad sectors."

While the CMA has not yet determined if there are grounds for finding Meta in breach of competition law, the investigation aims to establish if Meta's data policies are impairing healthy competition in the markets it operates in. Key areas of focus will likely include how Meta collects data through its single sign-on option used by third-party apps and websites, as well as how it leverages data from advertising on its platforms for its own services like Facebook Marketplace.

The CMA's investigation powers allow it to demand documents and data from Meta as well as question relevant employees. If Meta is ultimately found to have infringed competition laws, the CMA can impose structural or behavioral remedies and financial penalties.

This is the latest regulatory scrutiny for Meta in the UK after being fined over user data and content moderation issues. It also comes amid wider concerns globally about the market power of large tech firms. Meta has stated it will cooperate with the investigation. The probe underscores increasing regulatory focus on ensuring a level digital playing field for all businesses.

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