The European Union is investigating Facebook’s parent company, Meta, for possible violations of free market competition stemming from the close relationship between its main social networking service and its online shopping platform, Facebook Marketplace.
Because of Meta’s strong position in social networks, competition regulators in Europe are concerned that offering both of the company’s services simultaneously in a single package could allow Meta to outcompete its rivals in market of online classified ads, the European Commission said on Monday.
EU officials also claim that Meta’s ability to use data collected from display ads bought from rival online shopping websites on its platform could give it unfair insights that could strengthen further the power of Facebook Marketplace.
The European Commission announces with a notice that the European Union has presented its concerns in writing to Meta.
The investigation marks the latest set of antitrust violations for Meta, which is already defending itself against two high-profile antitrust lawsuits brought by the Federal Trade Commission.