The Strategist

UK watchdog proposes new rules for Google and Facebook

07/02/2020 - 08:42

The Competition and Markets Authority (CMA) of Great Britain has published its proposals for “introducing a new regulatory regime that promotes competition to tackle Google’s and Facebook’s market dominance.” Among other things, the watchdog proposed creation of a new department for digital markets, which will primarily regulate the online advertising market.

Lyncconf Games via flickr
Lyncconf Games via flickr
In addition, CMA wants to draw up a code of conduct for Internet giants that will regulate the activities of such companies and ensure that they do not apply “practices of exploitation and exclusion (of competitors)”.

In accordance with the proposals, the authority should receive a right to require Internet giants to separate their platforms, if it considers it necessary. Google will also have to share information related to online advertising, for example, about requests and clicks on certain ads with competitors, and Facebook will be required to give users a right to choose whether or not to display targeted advertising.

According to CMA, Google and Facebook receive 80% of revenue in the UK online advertising market, which is estimated at 14 billion ($ 17.5 billion), while Google accounts for 90% of the search advertising market.