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| Amazon and Meta both own online retail platforms that attract a large number of users. (Source: Newage Business) |
Recently, the UK Competition and Markets Authority (CMA) announced that two US tech giants, Amazon and Facebook's parent company Meta, have voluntarily committed to changing their retail platforms to help "protect fair competition."
The CMA said that the two US online giants have accepted a series of commitments after the CMA conducted investigations into concerns about competition in the use of their advertising data.
In July 2022, the CMA launched an investigation into Amazon amid concerns that Amazon was abusing its dominant position as the leading online retailer in the UK, giving its own sales segment an "unfair advantage" over competitors. Amazon was also accused of "favoring" sellers who used its shipping and warehousing services.
An Amazon spokesperson said Amazon had “engaged constructively with the CMA” in the investigation. Amazon also welcomed the solution offered by the CMA, stating that these commitments enable Amazon to continue serving consumers and more than 100,000 small and medium-sized businesses on its platform in the UK.
As for Meta, the CMA began investigating this giant in June 2021 due to concerns that Meta had an "unfair competitive advantage that could distort competition" on the Facebook Marketplace platform.
According to the CMA, Meta has also signed commitments to prevent the company from exploiting the data of its advertising clients. Meta has also committed to moderating its use of advertising data to develop its products.
Meta welcomes the CMA's decision to halt its investigation after the company committed to implementing systems and controls to ensure that advertising data from competitors will not be used on Marketplace.
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