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
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×