European Union (EU) investigators are ramping up their antitrust inquiry into Facebook’s data practices, in response to The Wall Street Journal.
The EU’s investigators have been requesting “documents identified with allegations by rival companies and politicians that Facebook utilized access to its users’ data to stifle rivalry, compensating partners and cutting off rivals, those individuals said.”
One such instance stems from how Facebook used VPN supplier Onavo, which the corporate bought in 2013. The WSJ reported in 2018 that Onavo was passing details about its customers’ habits to Facebook, primarily serving as an early warning system for the social media big. By offering info on what rival apps Onavo clients have been utilizing, Facebook may take motion earlier than these apps turned a risk to Facebook’s enterprise.
According to the WSJ, the EU used a “law that allows for daily fines to punish noncompliance,” when requesting paperwork about how Facebook manages entry to its consumer data. By utilizing that regulation, the EU is tipping its hand that it doesn’t belief Facebook to adjust to its requests except it’s compelled to take action. At the identical time, by specializing in how Facebook manages data access, the EU’s investigation appears to be centering round these allegations of anticompetitive habits.
We will proceed to offer updates because the story develops.