According to the report, the Competition and Markets Authority (CMA) will be investigating if Facebook and Google were basically operating a duopoly, giving consumers unfair deals in exchange for personal data.
If any irregularities are found, the CMA said it would recommend changes to the government.
“Much about these fast-changing markets is a closed book to most people,” CMA Chairman Andrew Tyrie said. “The work we do will open them up to greater scrutiny, and should give Parliament and the public a better grip on what global online platforms are doing.
“These are global markets, so we should and will work more closely than before with authorities around the world, as we all consider new approaches to the challenges posed by them.”
Tech giants are being scrutinised by European regulators for possible monopoly abuse. Ever since GDPR (General Data Protection Regulation) went into force in May last year, communications and competition watchdogs in the Old Continent have been looking into the practices of Facebook, Google and others.
One year ago, Google was fined by the European Commission because it bundled search and the Chrome browser with its Android operating system.
At the same time, Facebook is looking at multiple GDPR fines in Ireland.