ACCC : The Australian competition regulator says it needs more control over Google’s dominance of the $ 9.5bn online advertising industry. With 90% of more than one Google service by 2020.
long-term digital platforms
As part of its investigation into long-term digital platforms. The Australian Competition and Consumer Competition Commission launched. An investigation in March. Into the complex world of online advertising and market problems in which such ads are bought and sold.
Information of who is visiting the site
That uses the information of who is visiting the site and the amount of ad presentation.
By 2020, 90% of the ads sold by this offer outperformed at least one Google-owned service, the report found.
Google’s governance is supported by a number of factors including its data profitability. Access to specialized listing and advertiser requirements, and integration into all of its operations,” the report said.
“For more than a decade, Google’s vertical integration and power in ad technology. Technology has allowed it to engage in a wide range of behaviors that have reduced competition over time and strengthened its dominance.”
Google’s takeover of advertising companies
Google’s takeover of advertising companies, including DoubleClick and Admob, as well as the YouTube video platform. It has helped strengthen its position, the ACCC said.
ACCC chairman Rod Sims told Guardian Australia an important issue facing media outlets.
No competition in the market
Sims said there was no competition in the market to keep prices low. And it was difficult to get information about Google advertisers.
“If you want to know what companies are advertising on your website. If you want to block certain companies that are advertising on your website. It’s very difficult to do that with Google,” he said.
Choice of business models
“That alone is not the choice of business models. It makes it a very confusing problem. And these are the problems of many people who run websites, but especially newspaper publishers . The biggest problem in a large and rapidly growing market.”
The ACCC has made six recommendations in its report. Including the need for Google to be more transparent in its use of data collected from consumer services. It has proposed a new sector code to improve transparency in the funding of ad technology services.
Enacted in Europe
Sims said the proposed laws would try to comply with laws enacted in Europe and the UK.
“What we want to do here is try to keep up with them as much as possible,” he said.
“Unlike the media interview code where we started, here [with ad technology] we don’t go first.
“We don’t go behind the package, don’t get me wrong, but others are already doing it.”
Sims said the ACCC was also looking into specific allegations about Google’s alleged misconduct under existing competition law.
A Google spokesman disputed the minor focus of the survey. Which does not include advertising on other digital platforms such as. Twitter, Facebook and Snapchat – noting that Google is also competing in advertising for these providers.
The spokesman said the PwC report found that three-quarters of Google tech customers in Australia. They were small and medium-sized businesses, and that its services were limited to financing. The equivalent of 15,000 full-time jobs, with an annual contribution of $ 2.45bn to the economy.
“As one of Australia’s leading marketing technology providers. We will continue to work closely with industry and regulators to support a healthy advertising system.”
The draft new legislation and proposed powers will form part of the ACCC’s major report to be released. In September 2022. With consultations to begin in the first quarter of next year.