UK Antitrust Watchdog Sets Out Proposals to Regulate Digital Giants
December 18 2019 - 09:04AM
Dow Jones News
By Adria Calatayud
The U.K.'s Competition and Markets Authority on Wednesday
outlined a series of preliminary proposals to regulate online
platforms and digital advertising, as regulators worldwide tighten
their grip on the tech industry.
The antitrust regulator, which began examining the sector in
July, said preliminary findings indicate there is a strong argument
for developing a new regulatory regime to govern the behavior of
online platforms and give people greater control over their
data.
The CMA said Alphabet Inc. (GOOGL)'s Google accounted for more
than 90% of around 6 billion pounds ($7.92 billion) generated in
revenue from search advertising in the U.K. last year. Meanwhile,
Facebook Inc. (FB) received almost half of all display-advertising
revenue in the U.K., which reached more than GBP2 billion, it
said.
The regulator invited comments on a series of proposals to open
up the search market, require Facebook to connect more seamlessly
with rival social networking sites, and address conflicts of
interests and lack of transparency in digital advertising. Its
interim report will be open for consultation until Feb. 12, the CMA
said.
"At the end of the study, we'll present our findings to the new
government as they decide whether and how to regulate what is an
increasingly central sector in all our lives," CMA Chief Executive
Andrea Coscelli said.
The CMA said a lack of real competition for Google and Facebook
could mean people miss out on the next great new idea from a
potential rival and result in a lack of proper choice for consumers
and higher prices for advertisers. Furthermore, the market position
of Google and Facebook may potentially be undermining newspapers
and publishers' ability to produce valuable content, it said.
The regulator said it is also concerned about a lack of
transparency in the way that business on digital platforms
works.
Earlier this year, a government-appointed panel of experts led
by Jason Furman, a Harvard University economist who previously
chaired President Obama's Council of Economic Advisers, recommended
establishing a new regulator that would work with big tech
companies to develop a code of conduct.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
December 18, 2019 08:49 ET (13:49 GMT)
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