Saturday 11 July 2020

Taboola-Outbrain merger faces Phase II investigation


Taboola-Outbrain merger faces Phase II investigation



The Competition and Markets Authority (CMA) has launched a Phase II review into the merger of digital advertising platform operators Taboola and Outbrain.

The probe coincides with CMA recommendations on how to promote competition in the sector following its separate market study.

The CMA has stated that the merging parties did not offer remedies to address the concerns it had raised about the impact on competition in the UK online advertising sector.

Taboola and Outbrain employ algorithms to display personalised recommended content in publishers’ websites and operate on a pay-per-click basis.  The publishers receive a share of revenue each time a user clicks on an ad.

Taboola has claimed that the company offers “a more robust competitor to Facebook and Google”.  The CMA finds that the merged entity would control 80 per cent of the content-recommendation market.

The CMA has 24 weeks until 24 December 2020 to issue its final decision on whether to approve or prohibit the merger.

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