The investigation aims to clarify how the social giant collects and uses advertisers’ data to compete with them. If, as a result of the actions, it turns out that Facebook is playing them dishonestly … the Silicon Valley giant will face consequences. In case of breach of the provisions relating to the protection of personal data, the company may face fines of billions of dollars.
As the European Commission explains – companies that compete with Facebook can provide the portal with valuable business data. All thanks to the ads on the portal. The stolen data will in turn be used to compete with these companies in other areas. The European Commission notes that this is particularly true of online advertising.
The EU investigation focuses on the use of data on Facebook’s Marketplace. But this is not the end. Suspicion was also raised – this time by the British – by the giant online dating service. Also in this case, there is an unjustified use of users’ private data.
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As Britain’s Guardian newspaper notes, this is the first time since Brexit that EU and UK regulators have coordinated a major investigation together. We read below: ‘The initiative hits the core of Facebook’s revenue, which is largely dependent on selling ads on its platform’.
Margrethe Vestager, the European Union Commissioner for Competition, in turn, explains that the European Commission will examine in detail whether the data sent to Facebook is used by the giant to gain a so-called competitive advantage. “Especially in the classifieds sector, where people buy and sell goods on a daily basis, and Facebook also competes with the companies from which it collects data,” he adds.
Let us remind you that the problems facing the global leader in the social networking sector do not diminish. Already on Saturday, the leaders of countries included in the so-called G7 groups reached an agreement on the minimum global tax on giant companies – the so-called digital tax. Although we have to wait for details until July, proponents of taxing the internet giants are already wringing their hands, and we hope to wait for a hack decision.