EU Regulators Target Facebook

Facebook Marketplace Under Investigation

Antitrust regulators from the European Union and the UK are investigating Facebook (FB) Marketplace. The regulators are looking into allegations that Facebook uses data it amasses from advertisers to help its Marketplace classified ads service. The UK’s Competition and Markets Authority is also looking into whether Facebook uses advertiser data to give its online-dating service an illegal advantage. The European Commission and the UK Competition and Markets Authority are coordinating their efforts.

Facebook said it intends to cooperate fully with the regulators as a way to demonstrate that the charges are without merit. The company noted its Marketplace and dating services are in highly competitive markets with many large players.

Things Just Got Formal

The move by the European regulators is a key step in what has been a long and informal inquiry into one of the world’s largest social media companies. If either regulator finds evidence that backs up the claims, they can file formal charges against Facebook. They can also choose to drop the case entirely.

Friday’s action focuses on how Facebook interacts with the data it collects from advertisers and whether the company is using the data to gain unfair advantages over competitors.

European Regulators Step up Scrutiny

Google (GOOGL) also faced increased scrutiny on Friday from Germany’s competition regulator. The watchdog announced it opened an inquiry into Google’s news showcase in which the search giant pays to license content from publishers. The German regulator will look into allegations that Google imposes unfair conditions on publishers. Regulators are also investigating Google’s process in selecting news outlets for the service. Last month the European Commission charged Apple (AAPL) with distributing music streaming apps in an unfair way.

All these actions are part of European anticompetitive regulators’ increased scrutiny of some large technology companies. It will be interesting to watch how the legal battles play out and if more charges are coming.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS21050703