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Aus Needs Competitive Digital Ad Space: ACCC

Australia needs a competitive digital advertising landscape in order to fairly serve advertisers, publishers and consumers alike, ACCC Chair Rod Sims said today.

The ACCC’s advertising tech inquiry report, released last month, found “competition for ad tech services is ineffective and that Google dominates the ad tech supply chain.”

Speaking at a Global Competition Review webinar today, Sims continued to push this point

“Google’s vertical integration and dominance in the supply chain, as well as its strong position in related services such as YouTube, has allowed it to engage in leveraging and self-preferencing conduct, which have likely interfered with the competitive process,” Sims said.

“Over time, this conduct has lessened competition for ad tech services and allowed Google to establish and entrench its dominant position in the ad tech supply chain. This vertical integration has also created conflicts of interest, which can harm advertisers and publishers.

“The lack of competitive pressure and transparency means there is little incentive for Google to manage these conflicts, and unlike other industries, such as financial services, there are no regulations requiring Google to manage these conflicts.”

The ACCC are asking to be given more powers to address these competition issues.

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