Meta’s New Advertising Data Commitments Approved by UK Competition Authority
Exciting news for Meta as the U.K. Competition and Markets Authority has given the green light to their new approach in handling advertiser data. This approval comes just in time for the upcoming rollout of a new digital markets competition regime, giving the authority more power to curb monopolistic behaviors of big tech companies.
The CMA also closed its existing Competition Act cases into Google’s Play Store and Apple’s App Store, showing their commitment to ensuring fair competition in the digital market. Google’s proposed alternate payment options were rejected, as they still posed a threat to competition.
The CMA’s new regime, the Digital Markets, Competition, and Consumers Act, will allow them to investigate tech companies like Google and Apple more thoroughly for any potentially anticompetitive practices.
How Meta’s New Advertising Data Commitments Came About
The investigation into Meta was launched in June 2021 due to concerns over their data practices potentially giving them an unfair advantage. The updated rules aim to create a level playing field for advertisers on Facebook Marketplace by removing the need for opt-in or opt-out processes.
Meta’s dominant position in the market, with over 10 million active advertisers, brought in billions from digital advertising, making it crucial for the CMA to ensure fair competition. Meta’s commitment to limiting the use of advertiser data in Marketplace development was a step in the right direction.
What is the Digital Markets, Competition, and Consumers Act?
The DMCCA is a law aimed at regulating major digital firms with significant market power. It grants the CMA new powers to impose requirements on tech companies with strategic market status, similar to the E.U.’s DMA. The bespoke regulations under the DMCCA will address specific issues faced by these companies, ensuring fair competition in the digital space.
With the approval of Meta’s new advertising data commitments and the implementation of the DMCCA, the U.K. is stepping up its efforts to create a more level playing field in the digital market.