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Digital Competition Expert Panel Public Responses to Call for Evidence from Organisations

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Digital Competition Expert Panel Public Responses to Call for Evidence from Organisations Digital Competition Expert Panel Public responses to call for evidence from organisations Contents Organisation Page Advertising Standards Authority……………………………………………………… 01 Airbnb UK Ltd……………………………………………………………………………………. 03 American Chamber of Commerce to the European Union ……………….. 09 Arete Research Services LLP……………………………………………………………… 17 Baker & McKenzie LLP………………………………………………………………………. 24 Barclays ……………………………………………………………………………………………. 27 Bertelsmann SE & Co. KGaA……………………………………………………………… 36 British Broadcasting Corporation………………………………………………………. 42 BT Group plc……………………………………………………………………………………… 51 Centre for Competition Policy (University of East Anglia)………………….. 106 Citizens Advice …………………………………………………………………………………. 115 City of London Law Society (Competition Committee)……………………… 146 Computer & Communications Industry Association………………………….. 152 Digital Policy Alliance ……………………………………………………………………… 163 DMG Media………………………………………………………………………………………. 167 Doteveryone…………………………………………………………………………………..... 201 Federation of Small Businesses………………………………………………………… 205 Foundation for Information Policy Research……………………………………. 208 Google LLC and Alphabet Inc…………………………………………………………….. 212 Incorporated Society of Musicians……………………………………………………. 246 Information Commissioner's Office…………………………………………………… 249 Law Society of Scotland…………………………………………………………………….. 258 medConfidential……………………………………………………………………………….. 269 Mozilla Corporation………………………………………………………………………….. 272 News Corporation…………………………………………………………………………….. 280 News Media Association…………………………………………………………………… 298 Open Data Institute…………………………………………………………………………… 360 Professional Publishers Association…………………………………………………… 375 The Internet Advertising Bureau……………………………………………………….. 384 Uber………………………………………………………………………………………………….. 397 UK Computing Research Committee…………………………………………………. 404 Vodafone..………………………………………………………………………………………... 410 Which?................................................................................................... 415 5th December 2018 ASA submission to Digital Competition Expert Panel: Call for Evidence 1. Background and Introduction 1.1. This submission is provided by the Advertising Standards Authority (ASA), the Committee of Advertising Practice (CAP) and the Broadcast Committee of Advertising Practice (BCAP) – the ‘ASA system.’ 1.2. The ASA is the UK’s independent advertising regulator. We have been administering the non-broadcast Advertising Code (written and maintained by CAP) for 56 years and the broadcast Advertising Code (written and maintained by BCAP) for 14, with our remit further extended in 2011 to include companies’ advertising claims on their own websites and in social media spaces under their control. 1.3. We are responsible for ensuring that advertising is legal, decent, honest and truthful and our work includes undertaking proactive projects and acting on complaints to take action against misleading, harmful or offensive advertisements. We are committed to evidence-based regulation and we continually review new evidence to ensure the rules remain fit-for-purpose. 1.4. In addition to investigating ads, we also provide a wealth of training and advice services (most of which are free) for advertisers, agencies and media to help them understand their responsibilities under the Codes and to ensure that fewer problem ads appear in the first place. CAP and BCAP provided over 389,000 pieces of advice and training in 2017. 1.5. The ASA is providing this written submission in response to the Digital Competition Expert Panel’s Call for Evidence. 2. Consultation Question: Are there other policy changes beyond traditional competition tools that could facilitate entry and thus improve competition and economic outcomes? 2.1. It is vital that a level playing field is maintained to ensure that the potential for unfair advantage to is minimised. Doing so helps to stimulate competition and gives a consistency of protection to the general public. The ASA has regulated paid-for online ads since the emergence of the internet. In 2011, the ASA’s online remit was extended to include companies’ and other organisations’ own advertising claims on their own websites and social media spaces. We call this online ‘advertiser-owned’ advertising. That important subsection of online media has come to account for half of our regulation. 89% of those ads concerned potentially misleading claims, compared to 73% of cases resolved by the ASA in general. 2.2. 88% of the 7,099 ads amended or withdrawn by the ASA during 2017 were online ads (in whole or part). The vast majority of advertisers subject to an upheld complaint come into compliance with the strict advertising rules. For the small minority of noncompliant online advertisers, the ASA has a range of sanctions: Listing on our Non-Compliant Online Advertiser register Pay-per-click (PPC) ad campaigns suspended ASA PPC campaign to further promote non-compliance Referral to Trading Standards for legal action 1 1 2.3. The ASA is in the forefront worldwide of the challenge to regulate newer forms of online advertising like influencer, native and affiliate advertising, as well as how ads are targeted online and on social media platforms like Facebook, YouTube, Instagram, Snapchat and Twitter. 2.4. Ads for age-restricted products online – including on social media – need to follow the same strict content rules as those in traditional media such as TV. They must be prepared in a way that is socially responsible and which doesn’t appeal inappropriately to children or other vulnerable people. Crucially, ads for age-restricted products mustn’t be directed at children. 2.5. Advertisers need to be open and upfront with people about when they’re being advertised to. Brand partnerships with influencers are on the rise, particularly on social networks like Instagram, YouTube, Snapchat and Twitter. Brands’ engagement of influencers can be within the rules, so long as they’re upfront with followers that content which is paid for and controlled by the brand is an ad rather than the influencer’s independent opinion. The ASA has been working closely with brands, influencers and agencies to make sure ads are clearly labelled. We’re also conducting research into consumers’ recognition of online next year. 2.6. In November, we launched our new five year strategy, with a clear focus and commitment to strengthening further the regulation of online ads – including exploring the use of machine learning in regulation. The particular ‘online’ focus of the new strategy responds to the fact that businesses are increasingly advertising online, people are spending more time online, and the pace of change online is contributing to people’s concerns. 2.7. We intend to listen in new ways, including research, data-driven intelligence gathering and machine learning – our own or that of others - to find out which other advertising-related issues are the most important to tackle. We will develop our thought-leadership in online ad regulation, including on advertising content and targeting issues relating to areas like voice, facial recognition, machine-generated personalised content and biometrics. 2.8. Our guiding principle is that people should benefit from the same level of protection against irresponsible online ads as they do offline. The ad rules apply just as strongly online as they do to ads in more traditional media. This new strategy – setting the ASA’s direction to 2023 – will strengthen further the policing of online advertising to make sure people and responsible businesses are protected. Contact [Name redacted] Advertising Standards Authority [Email redacted] [Telephone number redacted] 2 2 Airbnb Digital Competition Expert Panel 1. Introduction 1.1. Airbnb welcomes the opportunity to respond to the Digital Competition Expert Panel’s call for evidence on competition in the digital economy. 1.2. Founded in 2008, Airbnb leverages technology to economically empower millions of people around the world to unlock and monetise their spaces, passions and talents to become hospitality entrepreneurs. Airbnb’s accommodation marketplace provides access to 5+ million unique places to stay in more than 81,000 cities and 191 countries. Airbnb’s experiences marketplace provides access to local communities and interests through 15,000 unique, handcrafted activities run by hosts in 1,000+ cities around the world. 1.3. As a platform, Airbnb has helped to create valuable new income streams for UK residents, to make travel more affordable, and to encourage travellers to spend their money in lesser-known destinations. Between July 2017 and July 2018, hosts and guests using Airbnb contributed an estimated £3.5 billion to the UK’s economy, with approximately 8.4 million guests travelling to the UK during this period. There are 223,000 listings on Airbnb from every region in the UK. 1.4. The digital markets in which Airbnb operates are characterised by constant innovation and technological change that has created significant opportunities and benefits for consumers. Digital business models have emerged that have been attractive to consumers and challenged incumbent businesses. 1.5. From Airbnb’s perspective it is important that - in developing recommendations for future competition in digital markets - the Panel appreciates that, as in other sectors of the economy, there is no “one size fits all” approach. Digital businesses comprise a range of business models and consumer propositions. The questions that the Panel is considering suggest that it is particularly interested in data-driven
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