INSUBCONTINENT EXCLUSIVE:
Image copyrightGetty ImagesThe UK should consider tougher rules for online giants such as Google and Facebook, the Competition and Markets
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.Image copyrightGetty ImagesThe 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 questionThe 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 backRonan 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."Image copyrightGetty ImagesA 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".
