Today’s news: Google Ad Stack Trial Wraps Up; Reuters and CNN Launch Paywalls; Europe Demands YouTube, Snapchat and TikTok to Expose Algorithm Secrets
Google’s ad stack trial has wrapped up, just three weeks after it began at the US District Court in Virginia. The trial, which had an expected duration of up to six weeks, was moved along swiftly by Judge Brinkema. The court is now taking a break before reconvening to hear both parties’ closing arguments on 25th November.
Google laid out its defence on Friday, which clung to the claim that the DOJ fails to understand the market, and that its biggest advertising competition – social media – is being downplayed, as well as citing security concerns, among others. The DOJ maintained that Google partly owes its dominant position to the tying up of its products – giving it control over all parts of the ad stack – a clear monopolist move. Google rebuked this argument, saying that we’re simply looking at one market, for which it’s trying to create the best single-market tool it can, connecting different parts to make it as effective as possible.
Additionally, Google is attempting to use a precedent set in a past Supreme Court case – which examined the two-sided market in the credit card industry – to its advantage. This 2018 case concluded with the Judge ruling that plaintiffs need to prove anticompetitive harm exerted on both sides of the market. If Google can convince Judge Brinkema that they are dealing with a two-sided market instead of three-sided, the DOJ would need to prove that both publishers and advertisers were harmed as a result of Google’s practices.
Next, Reuters and CNN have both launched paywalls for their online content. These moves follow a period of precarity for the publishing industry in which many publishers have seen their revenues decline. Under their new plans, CNN will charge users in the US a fee of USD $3.99 (£3) per month for full site access. Users will be asked to subscribe to the payment model after reading a certain number of free articles, although CNN states that some content will remain fully accessible without a subscription: the homepage, breaking news live stories, standalone video pages and sponsored articles. CNN also says that subscribers will gain access to exclusive election features, original documentaries and a curated daily selection of their journalism, as well as being exposed to fewer digital ads. Content will remain free for those outside the US.
Meanwhile, Reuters will charge USD$1 (75p) per week for full access to its site, including its app. Up until now, the publisher has been available for free but had required users to sign up after reading a certain number of articles. Reuters’ subscriptions will first be made available in Canada, followed by parts of Europe and the US, with global expansion planned later.
Turning our attention to matters in the antitrust arena, the European Commission (EC) has requested YouTube, Snapchat and TikTok to share information regarding their content recommendation algorithms. This request has been made under the Digital Services Act, which calls on big tech to take action against illegal and harmful content on their platforms. The EC intends to find out more about the role of these algorithms in amplifying risks associated with the electoral process, mental health and the protection of minors. TikTok specifically has been asked to disclose additional details about the measures it takes to keep bad actors from manipulating the app and to reduce risks related to elections and civil discourse. The social platforms must provide this information to the EC by 15th November, after which the commission will decide on the appropriate course of action.
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