The UK Competition and Markets Authority (CMA) released a report today, indicating that Meta has promised it that it will not use advertising data obtained from competitors to improve Facebook Marketplace.
The CMA launched an investigation in June 2021, accusing Meta’s Facebook Marketplace service of unfair competition.
The CMA argued that Meta’s bundling of the Facebook Marketplace service with Facebook, the main social network, created a “substantial distribution advantage” over competitors.
Facebook has billions of monthly active users and millions of active ad owners around the world. CMA believes that Facebook users will be automatically connected to Marketplace whether they want to or not.
Facebook Marketplace is a place to discover and buy things, but posting something for sale is not the same as creating a paid ad to show up to people shopping on Marketplace. By creating a Marketplace ad, you can promote your business to more users on the marketplace.
Note: However, this promise will not be fulfilled immediately. Meta Company promises to take effect within December, or June 30, 2024 (whichever is later).
