The U.K.’s Competition and Markets Authority (CMA) announced on Friday that Meta Platforms (NASDAQ:META) has proposed to restrict its use of data from other businesses’ advertisements in response to competition concerns. Meta has pledged not to leverage competitors’ ad data for its Facebook Marketplace classified ad service. The tech giant will also curb the use of such data in developing its other U.K. products that directly compete with advertisers.
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The CMA disclosed that if it accepts these commitments, rival advertisers would be able to choose whether Meta can use their ad data within the Facebook Marketplace. The regulator’s initial stance is that Meta’s proposal appears to address its competition concerns satisfactorily, and it has launched a consultation to assess these commitments further before making a final decision. The consultation period is set to conclude on June 26. This investigation, initiated in June 2021, probes into Meta’s practices of utilizing ad data from its advertising clients to enhance its own competing products.
Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 39 Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic above.
