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The findings of the UK report could give more weight to the need for further regulation of technology companies in Britain and Europe. The report's recommendations are not binding and will now be examined by the UK government.
The report calls on the UK's competition authority to investigate the online advertising industry to "ensure fair competition". In 2017, Google and Facebook accounted for approximately 54% of online advertising revenue in the UK.
"The government must take steps to ensure that the position of Google and Facebook does not cause undue hardship to publishers," the report said.
Last week, the German antitrust watchdog said that Facebook had abused its dominant market position in the collection and merging of user data. The authority said that Facebook could not combine separate application data such as Instagram and WhatsApp without the consent of users. Facebook said it was appealing the decision.
Legal experts have stated that European competition authorities could be well placed to prosecute technology companies in the region.
"Competition agencies often have more experience and better resources than data protection agencies and are therefore better placed to successfully argue against a big company like Facebook," said Anu Bradford, professor and director. from Columbia Law School's European Legal Studies Center, in an email to CNBC last week.
The European Commission, the EU's executive body, is currently investigating Google's antitrust violations in the advertising industry. The Commission has already imposed two record fines on the company for violating antitrust rules with its Android devices and comparison service.
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