Antitrust Watchdog Calls on UK Government to Tackle Tech Giants' Power
July 01 2020 - 7:40AM
Dow Jones News
By Adria Calatayud
The U.K.'s antitrust watchdog on Wednesday called on the U.K.
government to introduce a new regulatory regime to boost
competition and tackle Google and Facebook Inc.'s market power in
digital advertising.
The Competition and Markets Authority said existing laws aren't
suitable for effective regulation of the behavior of major
platforms funded by digital advertising. This conclusion followed a
year-long examination of online platforms and digital advertising,
after which the CMA said Facebook and Google--part of Alphabet
Inc.--have developed such unassailable market positions that rivals
can no longer compete on equal terms.
The regulator said Google and Facebook earn about 80% of
digital-advertising spending in the U.K., which was around 14
billion pounds ($17.36 billion) last year.
"What we have found is concerning--if the market power of these
firms goes unchecked, people and businesses will lose out," CMA
Chief Executive Andrea Coscelli said.
The regulator proposed a new regulatory regime that would
include opening up Google's click-and-query data to rival search
engines and increase Facebook's interoperability with competing
social media platforms, among other measures. The CMA said new
regulations should have the ability to order the separation of
platforms where necessary to ensure healthy competition.
The CMA said Facebook and Google's large user base is a source
of market power and each has unmatchable access to user data.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
July 01, 2020 07:25 ET (11:25 GMT)
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