CMA Secures Commitments from Amazon and Meta to Enhance Competition
The Competition and Markets Authority has obtained commitments from Amazon and Meta to ensure fair competition on their platforms, benefiting both sellers and consumers in the UK.
03.11.2023 | Competition and Markets Authority
The Competition and Markets Authority (CMA) has successfully negotiated commitments from Amazon and Meta following separate investigations aimed at promoting fair competition on their respective platforms, Amazon Marketplace and Facebook Marketplace.
For Amazon Marketplace, the commitments will ensure that third-party sellers have equal opportunities to compete, particularly regarding the visibility of their products in the 'Buy Box'. This change is expected to enhance customer access to competitive pricing and product offers. Additionally, Amazon is prohibited from using data from third-party sellers to gain an unfair advantage and must allow sellers to negotiate their own delivery rates with independent providers.
The CMA's investigation into Amazon began in July 2022, focusing on concerns that the company was favoring its own retail business over independent sellers. The commitments from Amazon will be monitored by an independent trustee approved by the CMA, and they are set to be implemented within six months, remaining in effect until June 2028.
Similarly, Meta has agreed to commitments that will prevent it from exploiting advertising customers' data to gain an unfair competitive edge on Facebook Marketplace. Competitors advertising on Meta platforms will have the option to opt out of having their data used to enhance Facebook Marketplace, thus ensuring a more equitable environment for all advertisers.
The CMA's investigation into Meta commenced in June 2021, with concerns regarding potential abuses of dominance. The commitments from Meta will be in place for five years following the implementation of the required changes.
Both companies' commitments are voluntary and aim to address the CMA's competition concerns without implying any legal infringement. The CMA anticipates that these resolutions will pave the way for more constructive outcomes as new digital market regulations are introduced.
