CMA to investigate Facebook's data usage amid concerns of "unfair advantages"

The Competition and Markets Authority has announced that it is launching an investigation into whether Facebook has broken rules with its data-gathering processes.

The Authority (CMA) said that the probe will aim to decide whether the social media conglomerate has gained an unfair advantage over competitors in the digital advertising and online dating industries through how it gathers and uses data.

The concern is that Facebook may have unfairly used the data to promote its Facebook Marketplace and Facebook Dating options, creating a harder environment for new or smaller businesses.

This comes as the European Commission also launches an independent investigation into Facebook’s use of data.

Andrea Coscelli, chief executive of the CMA, commented: “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.

“Any such advantage can make it harder for competing firms to succeed, including new and smaller businesses, and may reduce customer choice.

“We will be working closely with the European Commission as we each investigate these issues, as well as continuing our coordination with other agencies to tackle these global issues.”