Business & Investment

Australia challenges Google’s advertising dominance and demands data usage rules

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Sydney — Australia’s antitrust oversight body seeks authority to curb the use of Internet data to sell targeted ads, joining other regulators to allow the company to dominate the market, publishers and advertisers Said that it hurt consumers.

Comments from the report, released Tuesday, lined Australia with Europe and the United Kingdom, with regulators placing marketing materials using data collected from people’s online searches such as maps and YouTube to place the Alphabet Inc unit. Wants to stop them from attacking rival advertisers.

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According to media reports, the US Department of Justice is preparing an antitrust proceeding accusing Google of using the power of its market to thwart its advertising rivals.

“Europe and the United Kingdom are currently discussing such legislation and will try to coordinate with them next year,” Rod Sims, chairman of the Australian Competition and Consumer Commission (ACCC), said in an interview with Reuters. Stated.

“I don’t think we’re too late.”

Already this year, Google said it was ready to withdraw its core service from Australia-also recommended by the ACCC-forcing media companies to pay for content that drives traffic to search engines. ing. It eventually made a deal with most major outlets.

A Google spokesman didn’t get immediate comments on advertising. In a blog post published shortly before the ACCC report, Google said its advertising technology supported more than 15,000 Australian jobs and contributed $ 2.45 billion annually to the Australian economy.

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Treasury Secretary Josh Frydenberg, who commissioned the report, said the government would consider the findings and recommendations.

“Better internet”

The US judiciary is likely to use existing competition law against Google, but ACCC has a 200-page report that is anti-competitive under existing law as Google’s dominance over Australian online advertising is well established. He said it was not enough to curb the act.

According to regulators, more than 90% of ad clicks through Australia’s “ad tech” supply chain passed at least one Google-owned service in 2020.

According to the ACCC, U.S. companies are benefiting from vast amounts of Internet user data from search engines, mappings, and YouTube video streaming services, and will disclose how they used that information to sell and display ads. is needed.

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It also requires special authority to address imbalances in advertiser access to consumer data. For example, introduce a rule that prohibits a company from using data collected from one part of its business to sell targeted ads through another without a competitor getting the same. advantage.

Sims said he expects the global push to tighten regulation of Google’s advertising business to increase the likelihood of cooperation between US Internet giants and regulators.

“I think they can see what’s going on, and it’s their interest to have these rules coordinated (between countries), and it’s they really well thought out. It’s in the interest of, “he said in an interview.

“We don’t want to curb innovation. We don’t want to hurt. We drive competition, reduce barriers to entry, give consumers a better internet, and be more transparent about what’s happening. I want to. Don’t spend too much money. “(Report by Byron Kaye; edited by Muralikumar Anantharaman and Christopher Cushing)

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The partnership with Financial Post provides a detailed report on The Logic’s innovation economy.

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    Australia challenges Google’s advertising dominance and demands data usage rules

    https://financialpost.com/pmn/business-pmn/australia-challenges-googles-ad-dominance-calls-for-data-use-rules Australia challenges Google’s advertising dominance and demands data usage rules

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