437 pages. Final report. CMA continues to be a leader globally in recognizing intersection of data and competition policy and the unique role of tracking, data minining by Facebook and Google as their source of market power. Extensively covered in report (focus p149-). https://twitter.com/cmagovuk/status/1278271831548596227

Great to see @CMAgovUK move this chart to front of report. it’s one of most critical to understand (misunderstood due to Facebook/Google lobbying). Unlike other services, a majority of Duopoly’s data collection happens when users aren’t even intending to interact with them. /2

The CMA report includes some interventions on Google and Facebook’s data power. The last one is where we see most promise as it aligns with consumer privacy interests, privacy laws and forces businesses to compete on their actual trust with the user. Advertisers/G/FB hate it. /3

They also include some nice charts illustrating the various services that tie together. The public often thinks of these as wonderful and free services. In reality, each of these services is a “data delivery vehicle” enabling microtargeting of you. Here is Facebook. /4

And here is Google’s. Some of the data across Google’s key services was kept in a silo until 2016 when Facebook and shift to mobile pushed Google to get even more aggressive in its data use. /5

Here is Google’s “walled garden” it maintains and extends across the ad supply chain which the rest of the web depends. Google has acted anticompetively to protect its control here. @KenPaxtonTX also looking into this. Also see @ProfFionasm roadmap. /6

When you can collect most of data from other company’s work, avoid liability for most of your service and then monetize it against lower quality content -> $$$. Insane return on capital levels. Quoting CMA -> “This evidence is consistent with the exploitation of market power.” /7

In terms of Google, many parties have expressed concern over search dominance for years. Rightly so. I mean look at this. /8

But only now are regulators connecting all of the dots and the data economy underpinning it all. It’s why Google has been able to force more ads and monetization on its owned and operated properties by harvesting intent data at scale across mobile devices, the web, our lives. /9

Lol, Apple. C’mon. “Search engines do not pay Apple...” is legal twister. We get that Google’s payments to you are super high margin. They were for Firefox, too. But it’s not a good look to protect Google here. /10

Check out this chart. This is why the German Federal Cartel Office has also closed in on Facebook properties data practices. The constantly accelerating ARPU (despite importantly a decline in share of engagement) is due to data extraction and control. /11

CMA gets it. This is extactly right and why the most important antitrust conversations around the future of digital economy intersect with data policy and consumer protection...the heart of their biz model. ps reminds me we never saw UK’s @ICOnews final report on Facebook. /12

And why should everyone care? Without competition, our privacy and data is abused, our content erodes, hate speech, manipulation are more profitable than journalism and facts themselves, underlying trust erodes. We’re seeing all of this. Hence #StopHateForProfit /end