UK Antitrust Watchdog Sets out Proposals to Tackle Tech Giants' Hold of Ad Market -- Update
December 18 2019 - 11:03AM
Dow Jones News
(Adds Google, Facebook responses)
--The U.K.'s Competition and Markets Authority on Wednesday set
out preliminary proposals to regulate online platforms and digital
advertising
--Google and Facebook said they would cooperate with
regulators
--The CMA will present its findings on the GBP13 billion
online-advertising market to the U.K. government at the end of its
study
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.
Alphabet Inc. (GOOGL)'s Google and Facebook Inc. (FB) vowed to
collaborate with the U.K. government and the competition regulator
on online advertising, a market the CMA said is now worth around 13
billion pounds ($17.15 billion).
The CMA said Google accounted for more than 90% of around GBP6
billion generated in revenue from search advertising in the U.K.
last year. Meanwhile, Facebook 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.
"We've built easy-to-use controls that enable people to manage
their data in Google's services--such as the ability to turn off
personalized advertising and to automatically delete their search
history. We'll continue to work constructively with the CMA and the
government," said Ronan Harris, vice president of Google U.K. and
Ireland.
Facebook said it agrees with the CMA that people should have
control over their data and transparency around how it is used.
"In fact, for every ad we show, we give people the option to
find out why they are seeing that ad and an option to turn off ads
from that advertiser entirely," a Facebook spokesperson said.
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 10:48 ET (15:48 GMT)
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