Very bad day for @Google and @Facebook.

The @CMAgovUK published the conclusions of its market study and thinks both platforms should be broken up. Thread.

“Big is not necessarily bad,” the report writes, but the CMA has not seen “a significant challenge to the position of Google and Facebook for many years.”

This is how says both giants are dominant.

The markets exhibit characteristics making it hard for entrants to compete against the two tech giants.

These characteristics are “mutually” reinforcing, the CMA said.

Characteristics include
networks effects (both in search and social networks)
strong influence of default options on consumers’ behavior

unique access to user data
lack of transparency
presence of conflicts of interests, arising from consolidations in the value chain

CMA concluded that @Facebook & @Google have market power, and consumers face substantial harm.

It found that regulating the platform is the best solution.

@CMAgovUK calls for new regulator with powers to:
Impose a (binding) code of conduct, and fines if breaches
Intervene directly in the market.

Code of conduct would be based on 3 principles:
fair trading,
open choices,
trust and transparency
There would be specific guidance too.

Toolkit for intervention would include:
giving consumer more control over data
Mandating interoperability, third party access to data, and data separation
restricting ability to secure default positions and to introduce choice screens

For @Google, @CMAgovUK CMA think it should
open up its click and query data to rival
introduce menu for default search engine.
be broken up

. @CMAgovUK also thinks @Facebook should be ordered to
increase its interoperability
allow consumers to opt out of personalized ads.
divest Instagram

Here is the complete report, it's 437, and it's really well written.

Now it's up to the government to decide what to do.

https://assets.publishing.service.gov.uk/media/5efc57ed3a6f4023d242ed56/Final_report_1_July_2020_.pdf