Commission opens competition investigation into Google’s online advertising practices

 

 

Commission opens competition investigation into Google’s online advertising practices

The European Commission has launched an antitrust investigation into whether Google has breached the EU competition law prohibitions on restrictive agreements and abuse of a dominant position under Article 101 and 102 TFEU.

The Commission is concerned that Google has favoured its own online display advertising technology services in the 'ad tech' space.  It is investigating whether these practices disadvantage competing advertising technology services providers, advertisers and online publishers.

The Commission will investigate requirements to use certain Google services and Google Ad Manager.  

The Commission is also investigating Google's plans to prohibit the placement of third party cookies on Chrome and replace them with a "Privacy Sandbox".  This will stop making the advertising identifier available to third parties on Android devices when the user ‘opts out’ of personalised advertising.

The Commission will take into account the need to protect privacy, in accordance with the GDPR.  This part of the investigation mirrors a similar inquiry by the UK Competition and Markets Authority (CMA).  The CMA indicated last week that it was minded to close this part of its investigation by allowing the authority to have a role in third party cookies policy.

This EU investigation is high profile and big stakes.  This is the Commission’s fourth antitrust probe into Google relating to technology/IP/IT practices.  It reflects similar themes to the previous Shopping, Android and AdSense investigations.  Google is appealing all these decisions.  The penalties imposed totalled approximately EUR10 billion and required Google to change a host of its business practices.

https://ec.europa.eu/commission/presscorner/detail/en/ip_21_3143

CMA Consultation on UK version of Vertical Restraints Block Exemption

 

CMA Consultation on UK version of Vertical Restraints Block Exemption

The Competition and Markets Authority (CMA) is consulting on the retained EU Vertical Agreements Block Exemption Regulation (European Commission Regulation 330/2010) (VBER).  The CMA invites responses by 22 July 2021.

The CMA proposes to replace the retained VBER, upon expiry on 31 May 2022, with a UK Vertical Agreements Block Exemption Order (UK VABEO).

The UK VABEO will be tailored to the needs of the UK market.

The CMA intends to extend the exemption to cover wholesalers and independent importers who are also active in the downstream market and asks whether the current £44 million turnover threshold for such agreements should be revised.

The CMA considers that the current rules on hardcore restrictions which would prevent the block exemption applying are fit for purpose, except in relation to:

·        Territorial and customer restrictions, where the CMA plans to clarify the boundary between active and passive sales.

·        Indirect measures restricting online sales.  The CMA proposes to remove the prohibition of dual pricing and the requirement for overall equivalence from the list of hardcore restrictions.

·        Parity obligations (most favoured nation clauses or “MFNs”), where the CMA intends to add wide parity obligations to the list of hardcore restrictions.

The CMA considers that resale price maintenance (RPM) should remain a hardcore restriction.

The CMA will review the block exemption after six years to reflect the fast movement of market developments, not least the growth in online sales, Brexit and business cooperation in the wake of COVID-19.

https://www.gov.uk/government/consultations/retained-vertical-agreements-block-exemption-regulation-consultation

Market study in mobile ecosystems

 

Market study in mobile ecosystems

The Competition and Markets Authority has launched a market study into mobile ecosystems in the UK.  The CMA’s focus is on the role of Google and Apple over the supply of operating systems, app stores and web browsers.

The market study will assess potential consumer harm in four areas 1) competition in the supply of mobile devices and operating systems; 2) competition in the distribution of mobile apps; 3) competition in the supply of mobile browsers and browser engines; and 4) the role of Apple and Google in competition between app developers.

The CMA invited comments on the statement of scope, published alongside the study, by 26 July 2021.  

The CMA aims to publish an interim report on whether it will make a market investigation reference by 14 December 2021.  That process itself could take 18 months.

The CMA must publish its final report on the market study by 14 June 2022.

The study is proposed to be wide ranging and some would say it is long overdue.

https://www.gov.uk/government/news/cma-to-scrutinise-apple-and-google-mobile-ecosystems

Commission publishes preliminary report on consumer Internet of Things

 

Commission publishes preliminary report on consumer Internet of Things

 

The European Commission has issued interim findings in its sector inquiry into the Internet of Things (IoT).

The study raises concerns about the relationship between voice assistants as the link between smart devices and intermediaries and a lack of interoperability in the sector.

Unsurprisingly, the study reveals concerns about large amounts of data being consolidated in in the hands of a few vertically-integrated companies; namely Google, Amazon and Apple.

The Commission is consulting on its preliminary findings until 1 September 2021.  It plans to publish its final conclusions in the first half of 2022.

The results will inform the Commission’s regulatory and competition law enforcement strategy and they could frame the design of the controversial Digital Markets Act.

https://ec.europa.eu/commission/presscorner/detail/en/QANDA_21_2908