Press Release Platform Competition

U.K. Competition Authority Shows the Need for a Digital Regulator in the U.S.

July 1, 2020 , , , ,

Today, the Competition and Markets Authority, the U.K.’s competition enforcer, released its final digital advertising report. The report finds that both Google and Facebook dominate digital advertising markets, a situation that increases data collection while hindering innovation in the digital space. Consequently, the CMA proposes a new “Digital Markets Unit” to regulate digital platforms to promote competition. This is the final version of the interim report that served as the basis for recent papers arguing that U.S. antitrust enforcers may have cases against Google and Facebook. Public Knowledge urges Congress to create a new regulator to promote digital platform competition and increase choices for consumers and advertisers.

The following can be attributed to Charlotte Slaiman, Competition Policy Director at Public Knowledge:

“This report confirms what many Americans already experience. Google and Facebook control critical parts of our online landscape, and users, publishers, and advertisers often don’t have a choice but to use their services. This reduces innovation and harms consumers, including by the platforms getting more access to consumer data. The CMA proposes a new regulator focused on digital platforms, with tools like interoperability requirements and limits on self-preferencing to address the power of dominant incumbents. They recognize that these concerns are not limited to the U.K. The CMA has given us an excellent model for increasing competition in digital markets through a new regulator, U.S. policymakers should follow it.”

View our recent e-book, “The Case for the Digital Platform Act,” to learn more about why we need a digital regulator. You can also view our recent blog post, “Shot Across the Pond: U.K. Competition Authority Makes the Case for How to Regulate Google and Facebook,” for more information on the initial report’s findings.