The upcoming investigation is the latest campaign against the dominance of major tech companies after similar investigations were launched into Google and Apple earlier this year.
The British Competition and Market Authority (CMA) takes a comprehensive look at how Facebook uses customer data to crush competitors in social media and online advertising.
The investigation – which comes just weeks after CMA announced the investigation into Apple’s app store fees and new privacy settings from Google – is the latest blow against the power of major tech companies since it became a global regulator in its own right this year.
UK antitrust investigators are expected to cover similar topics to the Brussels investigation into the social media company, which focused on its free market platform.
The European Commission is examining allegations that Facebook distorts the classified ad market through the service.
The UK investigation, which also focuses on the market, is likely to examine Facebook’s position regarding its ability to collect data from its users to bolster its competitive advantage over competitors.
Regulators also have similar concerns about potential market misuse when it comes to Amazon, which is the owner of its platform and the seller of its products.
The CMA investigation is based on its report on digital advertising, which highlighted a feature Facebook has leveraged in areas such as online ads and social media.
The timing of the official announcement of the investigation may change, but legal experts said: Facebook has evaded intense scrutiny in the UK, so there is a strong desire among organizers to pursue the case.
The new investigation comes as the British watchdog is preparing to assume new powers regarding dealing with large technology companies through the new digital markets unit that is being placed within the British Competition and Markets Authority (CMA).
Facebook is under heavy criticism in the US as well, with the Federal Trade Commission filing a lawsuit against it in December over anti-competitive behavior.
The court said: It may seek an injunction from the courts that may compel Facebook to backtrack on its previous acquisitions.
Source: technical portal