Friday the U.K.’s competition regulator made an announcement. Amazon and Meta agreed they wouldn’t use data collected their marketplaces for an unfair advantage against competitors.
The Register explains:
In Amazon’s case, the e-commerce giant used vendors’ sales figures to decide which items it should sell, and how much to price products to get an edge over everyone else. The internet behemoth also promoted its own products with its Buy Box feature and it further cut into retailers’ margins by charging extra costs if they wanted to use Amazon’s Prime delivery services, the CMA said. Now Amazon has committed to doing less of that.
The Competition and Markets Authority said [Amazon] will be prevented from using third-party seller data that gives it an unfair commercial advantage, and will allow rivals to negotiate rates with independent delivery contractors working on behalf of Amazon. Merchants’ items will also be better supported by the Buy Box too, according to the CMA, instead of Amazon-led products or those from sellers that have bought into the company’s packing and delivery services…
[Facebook] was accused of exploiting advertisers hawking wares on Facebook Marketplace, and using competitors’ data to improve its own products or services. “Going forward, competitors of Facebook Marketplace that advertise on Meta platforms can ‘opt out’ of their data being used to improve Facebook Marketplace,” the CMA said.
The CMA also has specific plans for enforcement, reports TechCrunch. for Meta the UK agency “has said it will set up a monitoring trustee to oversee its adherence, including its new technical system rollout and employee training,” while Amazon will also get an “independent trustee” overseeing their compliance.
