The Competition and Markets Authority targeted US technology giants in a report on Wednesday and recommended that the British government adopt a new regulatory approach to manage large digital platforms that make money through online advertising.
The authorities said they were worried that the two companies had established “such an impeccable market position” that competitors could not compete on an equal footing, resulting in a large number of advertised hotels, flights, electronic products, insurance and other goods and services. on-line.
Officials say that Google and Facebook accounted for approximately 80% of the British digital advertising industry’s 14 billion pounds (approximately 13.2 trillion rupees) revenue last year. In the UK’s £7.3 billion (approximately Rs 68,841) search advertising market, Google controls more than 90%, and Facebook has more than half of its £5.5 billion (approximately Rs 51,862 crore) display advertising market. Share.
After a year of review, the regulatory agency found that the current law cannot effectively regulate the country’s digital advertising market.
CMA CEO Andrea Coscelli said: “If the market power of these companies is not controlled, people and businesses will suffer. People will continue to hand over unnecessary personal data, and lack of competition may mean With the higher prices of goods and services purchased online, we may all miss the benefits of the next innovative digital platform.”
The regulator proposed a new “digital market department” whose functions include ordering Google to share its data with rival search engines so that they can improve algorithms, and restricting the search giant to ensure its default search engine location on mobile phones and browsers Ability.
According to the new regulations, Facebook can also be ordered to improve its ability to cooperate with other social media platforms and allow consumers to choose whether to receive personalized advertising.
Ronan Harris, vice president of Google UK and Ireland, said: “Google supports “regulations that benefit people, businesses, and society.” We will continue to work constructively with regulators and governments in these important areas to The network that enables everyone to make the most of it.”
Facebook pointed out that it faces “huge competition” from emerging companies such as Google, Apple, Snap, Twitter, Amazon and TikTok, and looks forward to “interacting with UK government agencies on consumer protection regulations.”
Last year, after two sets of US state attorneys general investigated separately, Google and Facebook have already faced increasingly stringent scrutiny of their US advertising business. One investigation is investigating whether Google’s advertising business is engaged in monopolistic behavior, while another is investigating Facebook, which is suspected of antitrust issues, including whether its actions have increased advertising prices.
Some privacy advocates have questions about the other recommendations of the review.
Johnny Ryan, chief policy officer of the ad-blocking web browser Brave, said that the idea of providing a “secure universal digital ID” for the ad tracking industry is not feasible under the EU’s world-leading privacy standards. He said that another idea of letting people sell data to digital platforms or advertising agents is dangerous.
He said: “For the same reason, you cannot sell kidneys in this jurisdiction, nor can you give up your basic right to protect your data,” he said.
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