Britain’s competition watchdog announced on Friday that it has approved the commitments made by tech giants Meta (META.O) and Amazon (AMZN.O) to safeguard fair competition within their retail platforms.
These commitments signal the conclusion of the Competition & Markets Authority’s (CMA) investigation into the practices of Amazon Marketplace and Meta concerning the use of advertising data.
Amazon has pledged not to exploit the marketplace data of rival sellers to gain an unfair advantage. This commitment is a pivotal step in ensuring a level playing field for third-party marketplace sellers, as affirmed by the CMA.
Furthermore, Amazon’s commitments are designed to create an environment where independent sellers using the marketplace can compete fairly.
Specifically, it will ensure that these sellers have a genuine opportunity for their offers to be prominently featured in the coveted “Buy Box.”
Meanwhile, Meta has also entered into commitments to prevent the exploitation of its advertising customers’ data.
This means that competitors who advertise on Meta’s platforms will now have the option to “opt out” of their data being used to enhance Facebook Marketplace.
This move reinforces transparency and data protection in the competitive landscape.
Meta expressed its support for the regulator’s decision, signaling a willingness to cooperate and align with the CMA’s objectives in promoting fair competition.
Back in July, the CMA had previously stated that Amazon’s proposed changes to the way it interacts with third-party sellers on its Marketplace platform were seen as addressing competition concerns in the initial assessment.
In summary, the competition watchdog in the UK, the CMA, has accepted the commitments made by Amazon and Meta to ensure fair competition on their retail platforms.
These commitments include Amazon’s pledge not to exploit marketplace data and Meta’s commitment to protect advertising customer data, allowing competitors to opt out.
These measures aim to create a more level playing field for independent sellers and promote fairness in the online retail and advertising space, aligning with the CMA’s goal of safeguarding competition.