When asked why, in the absence of legislation to put the DMU on a statutory footing, the CMA had not opened a market investigation reference into digital advertising, Dr Coscelli stated that this tool is not well suited to complex remedied. The CEO argued that changes rapid changes in technologies mean a ‘one off’ intervention will be effective in dictating detailed remedies that will be sustainable in the long-term.
However, the regulator stated that they delay in legislation means that the opening of a market investigation reference will be discussed at the CMA’s board meeting in March. There are also active global investigations in the same area which could have very positive results for the UK, Dr Coscelli added.
Dr Coscelli highlighted the actions that the CMA is already taking on areas of interests to publishers, including gaining commitments from Google on its Privacy Sandbox proposals, but pointed out that any measures on payment for content will require new legislation.
The regulators also recognised frustration at the sluggish implementation of the new pro-competition regime for digital markets, to be enforced by the DMU. This follows criticism from competition lawyers Professor Damien Geradin and Dr Liza Lovdahl-Gormsen who answered questions from the Committee last week.
Dr Lovdahl-Gormsen stated that the CMA have not used the powers they already possess, adding that regulators such as the ICO and Ofcom also have a significant role to play.
Professor Geradin described the multiple rounds of consultation which have delayed legislation as a ‘British disease’, also stressing that the new pro-competition regime will be critical for publishers. He added that publishers continue to suffer from a lack of competition and choice in the digital advertising market.