Google dominated Australian online advertising: ACCC

Highlights

  • Australia’s Competition and Consumer Commission (ACCC) released a report on Tuesday which stated that Australia’s digital advertising market is dominated by Google.
  • Advertisers, publishers and consumers are extremely affected by the dominance.
  • The anti-trust regulators remarked that only new rules can handle the dominance and curb the harm to the global and local markets.

Australia’s Competition and Consumer Commission (ACCC) released a report on Tuesday which stated that Australia’s digital advertising market is dominated by Google and the dominance has a significant impact on the advertisers, publishers and consumers ultimately. The anti-trust regulators remarked that only new rules can handle the dominance and curb the harm to the global and local markets.

In the report, ACCC highlighted that, in 2020 more than 90% of clicks on online advertisements passing through the supply chain of AdTech, passes through a minimum one Google Service. In addition to this, the share of Google ranges from 40 – 70 per cent of revenue where revenue data is available.

A statement was released by Chair of ACCC, Rod Sims alongside the report that

No google spokesperson was present to present the perspective of Google, but through blogpost, the company stated that advertising technology which is provided by Google, extends approximately 15,000 jobs in the Australian market along with that, it contributes US$2.45 billion annually to the economy.

What do Australian regulators have to say about it?

Regulators stated,

The regulators added that Alphabet is benefited from the large amount of user’s data which is collected through its mapping, search engines and YouTube streaming. The company need to add transparency about the way the data is used for the purpose of selling advertisements.

The ACCC said that rules need to be formulated that will provide the power to maintain a balance between the access of consumers data among the competitors and business units.

Bottom Line

The Australian regulators are planning to take all the necessary steps on Google to control its dominance in the field of AdTech and provide opportunities to the competitors. The results from the steps will be awaited as it has the potential to transform the AdTech industry of Australia.

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