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

Omnicom Investors Cheer IPG Sell-Off, Despite Weak Ad Spend In Q2

Omnicom is halfway through a major sell-off of IPG agencies. Its future looks healthier as it prunes lower-growth firms, including eliminating certain specialist firms and overlapping agencies in certain countries.

Hundreds of emails, depositions and other documents have been unsealed in the lead-up to the Google antitrust trial, providing a fascinating look at how Google talked about its own products when no one else was watching – especially tools to counteract the rise of header bidding.

Why PubMatic Ditched Its Prebid Web Wrapper, But Never Its SDK

Earlier this month, PubMatic shelved its Prebid integration wrapper, known as OpenWrap Web, and announced it would begin recommending Playwire as an offloading-onboarding partner for the 250-odd publishers that use its wrapper.

Gareth Glaser, Co-Founder & CEO, Gamera

Google’s Buyer Direct Could Beat Agentic Ad Tech At Its Own Game

Agentic AI shows promise for direct deals. But if Google has its way, Buyer Direct could put an end to all sorts of agentic direct sales opportunities while they’re still in the cradle.

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

How Warner Bros. Discovery Is Creating Value Out Of Dead Air With Pause Ads

Streaming publishers are banking on pause ads to bolster revenue with a more user-friendly ad experience. With programmatic standardization still pending, Warner Bros. Discovery is taking a stab at advancing the capabilities behind its own pause ad formats.

Peacock Hits Profitability As Comcast Prepares To Spin Off NBCU

Peacock hit what Comcast Co-CEO Mike Cavanagh called “meaningful profitability” for the first time in Q2, just as Comcast decided to let it leave the nest. 

Comic: It's Coming For You

Programmatic Platforms Champion Transparency, But Not If It Means Giving Activists Access

A DSP refused to give ad industry watchdog Check My Ads a seat on its platform, even after both parties cosigned a master service agreement, citing concerns about “protections” for “vendor and supply partners.”