Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

'Time to tackle online giants' says UK regulator

The UK should consider tougher rules for online giants such as Google and Facebook, the Competition and Markets Authority has said.

It is concerned that the firms' dominance in digital advertising could be harming competition.

People using these platforms also may not be control of their data, the CMA said.

The comments come amid reports that the government will create a new digital watchdog to oversee these businesses.

The Financial Times reported that the regulator will have new powers which will include enforcing a new code of conduct for big tech firms and allowing more data accessibility for consumers.

Google takes the lion's share of search advertising sales in the UK, accounting for about 90% of the market with revenue of £6bn.

Facebook takes about half of UK online display advertising revenue, reaching £2bn in 2018.

The CMA said in an interim report on the market that "big is not necessarily bad" and that both firms offer innovative products and services.

However, Facebook and Google may have become entrenched in the UK market "with negative consequences for the people and businesses who use these services every day", the competition authority said.

A lack of "real competition" could mean higher advertising costs being passed on to consumers.

It could also mean people are missing out on "the next great new idea from a potential rival", the CMA said.

The market dominance of Google and Facebook "may potentially be undermining the ability of newspapers and other publishers to produce valuable content as their share of revenues is squeezed by large platforms," the CMA added.

There is also a lack of transparency about how their platforms work, with publishers reporting dramatic drops in traffic after opaque alterations to Google and Facebook algorithms, it said.


Data question

The collection of people's personal data gives the tech giants power by allowing them to target advertising at individuals more effectively than others can, it said.

"Both for privacy and competition reasons, it is essential that people feel in control of their data. At the moment, the CMA is concerned that this is not always the case," the competition authority said.

Facebook has a "take-it-or-leave-it" approach to its service when it comes to personalised advertising, "forcing [consumers] to share considerable amounts of personal data as a condition for using the service," the CMA said. Privacy settings are difficult to access, it added.

The CMA said at this stage "there is a strong argument for the development of a new regulatory regime" which could "include rules governing the behaviour of online platforms and giving people greater control over their own data".

Should the new UK government decide not to make any new rules, the CMA said it was ready to act directly through its own powers.


Google hits back

Ronan Harris, Google UK and Ireland vice-president, said that the digital advertising industry "helps British businesses of all sizes find customers in the UK and across the world and supports the websites that people know and love with revenue and reach".

"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 personalised advertising and to automatically delete their search history," he said.

"We'll continue to work constructively with the CMA and the government on these important areas, so that everyone can make the most of the web."

A Facebook spokesman said: "We are fully committed to engaging in the consultation process around the CMA's preliminary report, and continuing to deliver the benefits of technology and relevant advertising to the millions of people and small businesses in the UK who use our services."

"We agree 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.

"We look forward to further engagement with the CMA on these topics."

Industry body TechUK said: "Personalised advertising must put consumers in the driving seat and our members are continually working to improve their services, not only to offer people more relevant adverts, but to ensure that consumers are able to control their data and how it is used.

"This is a balancing act and TechUK is committed to working with the CMA over the coming months to find the best way forward that promotes competition and continued innovation whilst protecting consumers."


No market investigation?

While the CMA may have signalled a call for tighter rules, a full-blown market investigation is not likely to be on the cards, according to law firm Linklaters.

Christian Ahlborn, global head of competition at Linklaters, said: "While the report identified a range of potential concerns as well as potential remedies, the CMA cited the risk of cutting across government regulation, as well as the global nature of the conduct under scrutiny, as key factors in its preliminary conclusion that a market investigation would not be appropriate."

Nevertheless, 2020 would probably be "a year of intense scrutiny by the CMA of the digital advertising market as it seeks to address some clear, global concerns about the sector".

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
×