Home Privacy FTC Chair Simons Supports Federal Privacy Legislation, But Urges Caution

FTC Chair Simons Supports Federal Privacy Legislation, But Urges Caution

SHARE:

Federal Trade Commission Chair Joseph Simons is in favor of a national privacy regime – but beware the potential unintended consequences, he said.

“Depending on how you do privacy legislation, you could have an adverse impact on competition, potentially by entrenching the major digital platforms,” Simons told lawmakers during a House Judiciary subcommittee hearing on antitrust enforcement on Wednesday.

Large companies, big tech platforms in particular, have the resources to spend on compliance, which could give them an edge over mid-size and smaller players.

“And that’s really counterproductive to what you’re trying to do in the first place,” Simons said.

Google, for example, is chugging along quite nicely in Europe, despite the enactment of the General Data Protection Regulation (GDPR) and two multibillion-dollar fines levied by the European Competition Commission.

The number of third-party ad trackers per website in the EU, for example, declined between 18-31% since GDPR came into force, according to recent research from privacy software company Cliqz, which could be considered a win for Team Privacy.

But by comparison, thanks to their dominant market positions, Facebook only declined by 7% and Google even managed to increase its reach by 1%.

To Simons, GDPR “may be a great standard” or it may be “less wonderful,” only time will tell.

What GDPR does, however, is affords US agencies “an opportunity to look at it as if it’s a natural experiment,” he said. “We can look at what’s happening in Europe with GDPR and see if it’s [reducing competition] and maybe, if it is, we can figure out a way to avoid that.”

But some lawmakers at the hearing were concerned that government agencies aren’t being aggressive enough in upholding antitrust law in an evolving landscape of massive tech platforms.

For example, most monopolies are broken up not just because they’re big, but because they hurt consumers by using their size to manipulate the price of goods. Facebook and Google are big, but their services are free, and figuring out a way to regulate their bigness is a different beast.

It’s time to think about antitrust “from the perspective of the things we can’t see,” said Rep. Doug Collins, R–GA.

Back in the day, it was, “’Here’s the company that owns the hardware, the software, [and] now we’re dealing in the intangible areas,” Collins said, “and I think that’s going to become the bigger area of antitrust that we have to deal with as tech grows.”

And there’s “a growing consensus that privacy and competition are becoming increasingly interrelated,” noted Rep. David Cicilline, D–RI, pointing to the internal Facebook emails recently published by British lawmakers that seem to demonstrate Facebook executives exploiting the company’s dominant position to harm rivals.

The confluence of privacy, data collection and competition are top of mind at the FTC right now as it wraps a series of public hearings on those topics. The commission will use the information it’s gathered during the hearings, including public comments, to help set its priorities, policies and future enforcement agenda in light of marketplace changes, Simons said.

Tagged in:

Must Read

Ad Performance Hinges On Kicking Fragmentation's Butt

As performance takes center-stage in more advertising discussions, demands to solve fragmentation and cruddy measurement are reaching a fever pitch.

AdExchanger's Big Story podcast with journalistic insights on advertising, marketing and ad tech

AI Off The Rails

A word of caution to digital advertising companies, as they go all in on AI algorithms: They need to build these solutions with ownership, governance and accountability from the start – or AI could sink them with a single mistake.

square Headshot of Mohammad (Moe) Chughtai, global VP of strategy & partnerships at MiQ, against an orange and yellow gradient background

Better Attribution Makes Live Sports A Performance Play

To squeeze the most juice out of their live sports campaigns, many marketers are adopting programmatic buying and marketing mix modeling, both of which are also drawing more advertisers to the digital live sports cornucopia.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Roblox Opens Up Advertising To Kids Under 13

Roblox is making its under-13 audience available to advertisers for the first time. And it named youth-focused ad marketplace SuperAwesome as its exclusive advertising partner for under-13 users.

Comic: Header Bidding Rapper (Wrapper!)

Outgoing Prebid President Mike Racic On His Departure And The Org’s Next Act

Prebid is turning the page on what might be called its second chapter as the organization navigates some major changes in the digital advertising landscape and within its own ranks.

Meta is giving advertisers the ability to connect their third-party analytics tools directly to its ad platform via API.

How Apparel Brand Tuckernuck Devised The 'Why' Behind Its CTV Ad Performance

Performance CTV tech company Keynes launched an AI-powered platform. Tuckernuck says it can finally “pop open the hood” and see what’s working.