Washington D.C., London, Brussels, April 8th, 2020 — The Developers Alliance has provided comments in second stakeholder consultation for United Kingdom’s Competition and Markets Authority Digital Advertising Market Study. Today the CMA published those submissions, which are available here.
In July of 2019, the CMA launched a market study into online platforms and the digital advertising market in the UK, as part of its digital market strategy. The Developers Alliance provided comments on the issues raised in the statement of scope during the first consultation period. Those comments can be found here. The interim report was published in December of 2019 and a second stakeholder round opened. The comment submissions for the second round were due Wednesday, February 12th.
In their comments, the Developers Alliance highlights that interventions intended to assist participants in digital ecosystems are equally likely to adversely impact those they seek to help.
Additionally, they note the interim report’s narrow focus. Primarily, its concentration on only two online platforms, rather than the entirety of a complex online ecosystem that critically relies on online advertising revenues. Particularly, the report undervalues the impact on software developer market participants, whom the Developers Alliance represents.
The organization goes on to support the creation of an online advertising code of conduct reviewed and agreed upon by all market stakeholders. The Developers Alliance commends the CMA’s conclusion not to make a market investigation reference. In their responses, they cited the frictions between data protection/privacy regulations, competition remedies, and other ex-ante regulatory measures, which strongly encourage a cautious approach.
“Online advertising, in its various forms, and especially targeted advertising, represents important support for developers in providing free or low-cost and high-quality services to the consumers,“ stated Developers Alliance Director of EU Policy and Head of Brussels Office, Karina Stan. “Therefore, we welcome the proposed code of conduct, as the best way to identify and implement appropriate remedies for addressing different market issues. The involvement of all stakeholders is requisite.”
“There are more than two companies on the internet,” said Bruce Gustafson, President, and CEO of the Developers Alliance. “Regulations focused on the top players often cause catastrophic damage to the developers and SMEs that make up the bulk of the digital economy. All we ask is that regulators step back and assess who else they’re hurting when they target a big brand.”
The final report is tentatively scheduled for July 2020 publishing.
