The leading position of Google and Facebook means that they benefit from economies of scale and network effects thanks to the interdependence of their services, according to the report. Furthermore, in the case of Google, the dominant presence is on both the supply and demand sides and it also has a key role in supporting technologies (its web visitor analytics program or as a showcase for ads on its website). browser).
Ultimately, this dominance encourages what the researchers call “potentially anti-competitive practices” by the big guys to benefit themselves and nullify the competition.
Technological Complexity, Opacity and Fraud
One of the most pronounced problems in this scenario is the opacity or lack of transparency; which, according to the authors, is due “in part to the Iraq B2B list complexity of programmatic advertising, but also to the practices of online platforms.”
“Within these platforms, in so-called walled gardens, companies like Amazon or Facebook. Can use their domain to limit the disclosure of information about the costs, profits. Effectiveness of ad placement. These performances make it very difficult to know how money is being spent and where ads are being shown. Leading advertisers and publishers to question the effectiveness of the online ad and making decision-making difficult.
International Cooperation Between Regulatory Authorities
Finally, the other great consequence of this opacity is fraud; which, according to 2017 data, cost advertisers around 13.6 billion euros worldwide. Among the possible solutions are responses at the level of public policies and also at the sectoral level and of the different companies involved.
For example, “the creation of units within regulatory authorities that focus specifically on digital platforms and that have control. Enforcement powers; the establishment of codes of conduct. Regulatory reforms for information disclosure and interoperability. If necessary, antitrust interventions.” On the other hand, the report points out the importance of “ cooperation between regulatory. Authorities to share learnings, improve cross-border enforcement and coordination of measures”.