In a significant move, the Competition and Markets Authority (CMA) has approved Meta’s revised approach to handling advertising data on Facebook Marketplace. This decision comes after the social media behemoth committed to overhauling its data practices earlier this year in response to concerns about unfair competitive advantages.
Meta had previously allowed businesses advertising on its platforms to “opt out” of having their data used to enhance Facebook Marketplace. However, under the new rules, advertisers will no longer have their data utilized for Marketplace improvements without explicit consent. Instead, they will be required to “opt in” if they wish their data to be used in such a manner.
The CMA’s acceptance of Meta’s revised proposals follows extensive consultations with the advertising industry. According to the regulator, these updated commitments represent an enhancement over the original pledges and ensure that advertisers will not be disadvantaged.
A CMA statement clarified, “The revisions go above and beyond the original commitments and would not leave any advertisers worse off. Consequently, the CMA has approved the proposed changes.”
These modifications are part of a broader investigation launched by the CMA in 2021, which scrutinized Meta’s data collection practices amid fears that they might unfairly skew competition in online classifieds and dating sectors.
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