As outgoing US President Donald Trump throws tantrums about the fact that Twitter trends aren’t to his liking, on Twitter, other nations are considering the effect huge tech firms have on their markets.
Case in point is the UK which has said that it will crackdown on the likes of Facebook and Google swallowing up smaller firms.
Among the issues according to a report from Reuters is that companies like Google and Facebook dominate the advertising industry.
How much do these firms dominate? According to that same report Google and Facebook drew in 80 percent of a £14 billion spend on digital advertising in 2019. That’s a lot of market share for just two firms and leaving the countless other advertisers to make do with the remaining 20 percent is very problematic.
To tackle these problems, and others, the Competition and Markets Authority has set up the Digital Markets Units (DMU). The DMU will have the power to suspend, block and reverse decisions made by technology firms and in addition can issue penalties for no complying with the rules and regulations.
The UK’s digital secretary Oliver Dowden told Reuters that there is a growing consensus that there is a concentration of power within a small group of companies that is hampering growth.
We’re curious to see whether this line of thinking extends to other nations. While Google and Facebook have a global reach, governments taking action against the firms as regards advertising market share dominance is not something we see all that often.
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