Antitrust Watchdog Calls on UK Government to Tackle Tech Giants' Power

By Adria Calatayud

The U.K.'s antitrust watchdog on Wednesday called on the U.K. government to introduce a new regulatory regime to boost competition and tackle Google and Facebook Inc.'s market power in digital advertising.

The Competition and Markets Authority said existing laws aren't suitable for effective regulation of the behavior of major platforms funded by digital advertising. This conclusion followed a year-long examination of online platforms and digital advertising, after which the CMA said Facebook and Google--part of Alphabet Inc.--have developed such unassailable market positions that rivals can no longer compete on equal terms.

The regulator said Google and Facebook earn about 80% of digital-advertising spending in the U.K., which was around 14 billion pounds ($17.36 billion) last year.

"What we have found is concerning--if the market power of these firms goes unchecked, people and businesses will lose out," CMA Chief Executive Andrea Coscelli said.

The regulator proposed a new regulatory regime that would include opening up Google's click-and-query data to rival search engines and increase Facebook's interoperability with competing social media platforms, among other measures. The CMA said new regulations should have the ability to order the separation of platforms where necessary to ensure healthy competition.

The CMA said Facebook and Google's large user base is a source of market power and each has unmatchable access to user data.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

July 01, 2020 07:25 ET (11:25 GMT)

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