Germany: Published Report on Bundeskartellamt sector inquiry into non-search online advertising

On 31 May 2023, the Bundeskartellamt (BKA) issued its final Report following an inquiry into non-search online advertising. The investigation focused on market conditions and operational mechanisms within the non-search online advertising sector. The Report noted a lack of transparency in programmatic advertising and specified that entities had expressed concerns about the inability to track and evaluate the effectiveness of their advertising campaigns due to insufficient information. Furthermore, the Report notes regarding user data, which forms the core basis for programmatic advertising, that users cannot obtain information concerning its usage, recipients, and subsequent handling. The BKA highlighted that a limited number of companies can access vast quantities of diverse, up-to-date user data and that this imbalance needs to be carefully considered in any potential interventions. Finally, the BKA Report noted that Alphabet has a significant position in the non-search online advertising market and provides services at all levels of the value chain. The Report findings will be used in the BKA investigations into large platforms in the online advertising sector.