UK will introduce new rules next year aimed at preventing Google and Facebook from abusing their market monopoly and enhancing management.
The Competition and Markets Authority (CMA) said the two firms accounted for about 80% of the £ 14bn ($ 18.7bn) spent on online advertising in 2019.
The Benefits Of New Rules
The new government will try to give consumers more control over their information.
It will also “help small business developers, and ensure that news outlets are not forcibly evicted by big competitors,” the government said.
“There is growing consensus in the UK and abroad that the accumulation of power among a small number of technology companies slows down industry growth, reduces innovation and has negative implications for the people and businesses they rely on,” Digital Secretary Oliver Dowden said in a statement.
“It’s time to tackle that and launch a new era of technological growth.”
What Are The New Rules?
The new code will set clear expectations for firms that are stronger than what is expected of acceptable behavior when communicating with competitors and users.
Platforms supported by digital advertising may need to be more transparent about the services they provide and how they use consumer data.
They will be expected to give consumers the opportunity to choose whether to receive personalized advertising, and to restrict their customers, making it difficult for them to use conflicting platforms.
The code will be enforced by a new dedicated unit within the CMA.
The Digital Markets Unit may be empowered to suspend, block and modify decisions made by technology firms and to impose fines in violation of the law.
Google and Facebook have previously said they are committed to working with the British government and regulator in digital advertising.
Changes Affecting Media Industry
This new code could affect the media industry, which has lost much of its revenue to these tech giants Facebook and Google.
The new code will try to manage trade arrangements between publishers and the platforms to help retain business publishers.
It will try to stop online platforms from improper targeting for media publishers who limit their ability to monetize their content.