Facebook promises not to use data from ads to compete against businesses that place them

Meta has promised to not use the data from adverts placed by other businesses on the Facebook platform in order to compete against them, in particular via its Fashion Marketplace, after the competition watchdog flagged concerns.

Meta told the Competition and Markets Authority (CMA) it would remedy a situation which would allow it to develop and improve its own products in competition with its advertisers.

The regulator said the promise came after it launched an inquiry two years ago which found that Meta was able to use data from its advertisers against them.

“For example, data derived from users’ engagement with ads on Facebook could provide Meta with knowledge as to whether a user is interested in a particular product such as trainers, which could then in turn feed into a decision to show listings for shoes to that same user when it opens the Facebook Marketplace tab,” the CMA said on Friday.

Meta is by some distance the largest supplier of digital display adverts in the UK, earning between £4 billion and £5 billion in this country alone in 2021, the regulator said.

More than 10 million advertisers actively use its services across the world.

CMA executive director of enforcement Michael Grenfell said: “Where we identify potential competition concerns about a company’s practices or conduct, we look to see how our powers can be best used to have a positive impact on the market.

“Reducing the risk of Meta unfairly exploiting the data of businesses who advertise on its platform for its own competitive advantage could help many UK businesses who advertise there.

“We are now consulting on these commitments which we believe, at this stage, will address our concerns.”

The CMA said that for now it believes Meta’s offer will be enough to address its concerns and it will consult on the commitments.