Facebook classified ads under scrutiny amid EU competition probe
EU regulators have turned their attention to Facebook’s classified advertising business as part of an ongoing competition probe into the tech giant.
The next stage of the antitrust investigation will examine whether the social media platform is distorting the classified ads market by promoting its free Marketplace service to users.
Regulators have sent a 14-page questionnaire to rivals asking them to outline the impact of Facebook on their classified ads business, the Financial Times reported.
“Did the launch of Facebook Marketplace impact your online classified ads services business in each country in which you are present?” read one question, according to the report.
Facebook launched Marketplace in 2016 as a rival to US classified ads site Craigslist. It allows users to browse items for sale from people nearby and list their own items to sell.
The questionnaire is believed to be at least the third sent out by regulators as they prepare a competition case against the tech giant.
Facebook is also under scrutiny over the way it gathers and uses data, including for advertising purposes.
Investigators have continued to work on the case despite requests for a delay due to the coronavirus outbreak and the EU is hoping to charge Facebook in the summer, people with knowledge of the matter told the newspaper
A Facebook spokesperson said: “Compliance with competition rules and other legal requirements is a key consideration for Facebook as we develop our services and products. We stand ready to answer any questions the European Commission may have.”