The Australian competitors regulator has argued it needs more powers to control Google’s dominance of the $9.5 bn Australian online marketing market, with 90% of advertisement impressions passing through at least one Google service in 2020.
As part of its long-running digital platforms investigation, the Australian Competitors and Customer Commission launched an inquiry in March into the complicated world of online ads and concerns with the markets where those advertisements are bought and sold.The displaying of advertisements on websites is most frequently identified through an automated auction system that uses details about who is visiting the site as well as the cost of presenting the ad.The ACCC’s last report on the digital advertising market
, released on Tuesday, discovered Google was associated with almost every part of the ad technology supply chain. In 2020, 90 %of advertisement impressions traded by means of this supply chain passed through a minimum of one Google-owned service, the report found.”Google’s dominance is underpinned by multiple aspects including its
data advantage, access to unique stock and advertiser need, and integration across its services, “the report states.”Over more than a decade, Google’s vertical integration and strength in advertisement tech services has enabled it to take part in a range of conduct which has decreased competition over time and entrenched its dominant position. “Google’s takeover of ad companies, consisting of DoubleClick and Admob, also video platform YouTube, have actually assisted to more strengthen its position, the ACCC said.The ACCC chair Rod Sims informed Guardian Australia a crucial concern facing news websites and other users of advertisement tech is they did not know just how much income advertisement tech service providers like Google were making from each advertisement dished out to readers. The ACCC approximates it to be around 27 %of each advertisement sold.Sims said there was no competitive tension in the market to keep rates lower, and it was also tough to get data on marketers from Google. “If you need to know which companies are marketing on your site, if you want to obstruct certain business promoting on your site, it’s very hard to do that through Google, “he said.”Just that absence of choice of organization designs makes it a truly tricky issue, and these are concerns for lots of people who run websites, but particularly paper publishers– a very big problem in a big market that’s growing rapidly. “The ACCC made six suggestions in its report, including a requirement for Google to be more transparent in terms how it uses information gathered from consumer services. It recommended a brand-new market code to enhance transparency around costs for advertisement tech services. It likewise argued the ACCC needs to be provided higher powers to implement guidelines that restrict the market power of any one gamer in the sector, and impose more transparency.Sims said the proposed rules would attempt to align with laws being developed in Europe and the UK.”What we’ll be looking for to do here is trying to align with them as much as possible,”he stated. “Unlike the news media bargaining code where we went first, here [with ad tech] we’re not going first.”We’re not going on the back of the pack, don’t get me incorrect, however others are currently out there doing it.”Sims said the ACCC is likewise thinking about particular allegations about Google
‘s supposed behaviour under existing competition law.Google reacts A spokesperson for Google argued the narrow focus
of the inquiry– which omitted advertising on other digital platforms such as Twitter, Facebook and Snapchat– ignored that Google also completed on marketing against those providers.The spokesperson stated a PwC report discovered three-quarters of Google’s ad tech customers in Australia were little and medium businesses, which its services were estimated to support 15,000 full-time comparable jobs, with an annual contribution of$2.45 bn to the economy.”As one of the numerous marketing innovation providers in Australia, we will continue to work collaboratively with market and regulators to support a healthy ads environment.”The structure for proposed brand-new guidelines and powers will become part of a larger report the ACCC will release in September 2022, with consultations to begin in the very first quarter of next year.