There might be more trouble awaiting global tech giants Facebook and Google as Europe’s top antitrust regulator is probing data usage by the firms. This has, once more, brought to limelight their advertising business model.
The European Commission on Monday, 2 December, said that it has launched preliminary investigation into how Google and Facebook gather, process, use and monetise data for advertising purposes, reported CNN.
The preliminary investigation is aimed to assess if the two tech firms are following data collection norms in the region, pointed out CNBC.
“The Commission has sent out questionnaires as part of a preliminary investigation into Google’s and Facebook’s data practices. These investigations concern the way data is gathered, processed, used and monetised, including for advertising purposes,” a spokesperson for the European Commission, the EU’s executive arm, told CNBC.
Facebook and Google have both used data-based advertising businesses to generate revenue. However, the usage of data has time and again landed the two firms under regulators’ scrutiny.
Reuters first reported the new EU investigation into Google. It said that documents show the focus is on data related to the company's local search services, online advertising, online ad targeting services, login services and web browsers.
It also said that EU’s focus is on data related to local search services, online advertising, online ad targeting services, login services, web browsers and others.
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