Online Platforms and Digital Advertising Market Study: Observations on the Statement of Scope

14 Pages Posted: 9 Mar 2020 Last revised: 29 Mar 2021

See all articles by Damien Geradin

Damien Geradin

Tilburg Law and Economics Center (TILEC); University of East Anglia (UEA) - Centre for Competition Policy; Geradin Partners

Date Written: February 13, 2020

Abstract

I appreciate the opportunity to submit observations on the Statement of Scope (“SOS”) of the Market Study on “Online Platforms and Digital Advertising”. This Market Study is welcome given the importance of digital advertising for online content providers (which I will refer to as “publishers”), as well as the complexity and opacity of digital advertising markets. My research reveals that these markets do not function properly. They are ridden with conflicts of interest, leveraging practices, and their lack of competitiveness allows online platforms to generate supra-competitive rents to the detriment of advertisers, publishers and, ultimately, consumers. Investment in ad tech (i.e., the technologies developed and used by intermediaries between advertisers and publishers) has considerably declined.

My observations are based on several recent research papers I have authored or co-authored on digital advertising, with a focus on online display advertising, and on the competitive relationship between online platforms and news publishers. They are also informed by earlier papers I wrote on two-sided markets, intermediation platforms, big data, and business models based on the offering of “free” services, which are monetized by selling advertising. The law and economics of online platforms has been one of my main areas of focus in the past decade.

Keywords: Online advertising, Google, real-time bidding, abuse of dominance, competition, ad auctions, advertising, programmatic advertising

JEL Classification: D44, K21, L12, L41, L50

Suggested Citation

Geradin, Damien, Online Platforms and Digital Advertising Market Study: Observations on the Statement of Scope (February 13, 2020). TILEC Discussion Paper No. DP2020-043, Available at SSRN: https://ssrn.com/abstract=3537856 or http://dx.doi.org/10.2139/ssrn.3537856

Damien Geradin (Contact Author)

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

University of East Anglia (UEA) - Centre for Competition Policy ( email )

UEA
Norwich Research Park
Norwich, Norfolk NR47TJ
United Kingdom

Geradin Partners ( email )

Avenue Louise 475
Brussels
Belgium

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