July 30, 2018

The Select Committee report, published in April 2018, made various recommendations regarding internet advertising.

In response to the Committee recommendation that the advertising industry should take greater steps to self-regulate through independent bodies such as the Joint Industry Committee for Web Standards, the Government agreed that self-regulation was preferable to legislating. The Government said that as part of its Digital Charter work programme, it is working with a range of stakeholders, including regulators, platforms and advertising companies, to ensure that the principles that govern advertising in traditional media also apply and are enforced effectively online. As for possible legislation in this area, the Government said that it will publish a White Paper later this year, which will set out plans for upcoming legislation specifically focusing on online harms. In this context, potential areas in which it might consider legislating include online advertising.

As for the Committee’s recommendation that the Competition and Markets Authority undertakes a market study of the digital advertising market to ensure that it is working fairly for businesses and consumers, the Government said that it does not have statutory powers to direct the CMA to undertake particular investigations, other than in exceptional circumstances. However, it is keen to gather more evidence on the business models in the digital media advertising market as part of its Digital Charter work programme.

The Committee also recommended that the Government reviews whether competition law is appropriate for the 21st century digital economy, given the dominance of Google and Facebook in the market. In response, the Government said it will review the UK’s competition tools in the context of digital markets to make sure the powers are effective in responding to the new digital challenges. This will form part of its overall competition law review, which will be completed by April 2019.

In response to the recommendation that the Government introduces creative industries freelancer visas on the basis of reciprocal agreements with nations around the world, the Government said that it is currently developing options for the future immigration system that will be designed to continue to serve the national interest. However, decisions about the final arrangements are still under consideration.

To access the report and the Government’s response, click here.