The Competition and Markets Authority (CMA) has launched a market study into online platforms and the digital advertising market in the UK. ISBA welcome this study. It is our mission to deliver a well-regulated, effective and transparent market for our members. We also recognise that there is currently a lot of policy interest in the area of data and digital advertising. That’s why we met with the CMA to discuss the scope of their study, build their knowledge and discuss the work we have been doing on behalf of our members.
Central to that is our end-to-end study working with PwC on the programmatic supply chain. The first study of its kind in the world in which our members are working with us to deliver transparency into the value chain. The CMA are assessing three broad potential sources of harm to consumers in connection with the market for digital advertising:
- to what extent online platforms have market power in user-facing markets, and what impact this has on consumers
- whether consumers are able and willing to control how data about them is used and collected by online platforms
- whether competition in the digital advertising market may be distorted by any market power held by platforms
The final point is of central concern to our members and the basis on which we will be engaging on an ongoing basis with the CMA. They have set out that any remedies following on from its study are likely to build on the broad proposals made by the Furman review, with a focus on the development of an ex-ante regulatory regime to regulate the activities of online platforms. Any such a regime would look to encourage greater competition in both consumer-facing and digital advertising markets. It is also likely to form proposals for legislative change with the Department for Culture, Media and Sport conducting their own study later this year.
The CMA’s deadline for publication of its final report is 2 July 2020. Between now and then the CMA is seeking information and views from our members and carrying out analysis. It will then publish an update paper/interim report, with a final report setting out clear recommendations. ISBA is seeking to influence the outcomes of the study, collating the views of our members, in a positive way.