TelCo advertising, the challenge of Vodafone, Deutsche, Orange and Telefonica to Meta and Google – Corriere.it

Green light from the European Antitrust to the plan of Deutsche Telekom, Orange, Telefonica and Vodafone to challenge Big Tech with an alliance for online advertising. The Commission has unconditionally cleared the joint venture of the four telecommunications companies for a platform with digital marketing and advertising activities in France, Germany, Italy, Spain and the United Kingdom. The alliance is seen as the industry’s first attempt to challenge Meta and Google in the lucrative online advertising business and diversify revenue. The transaction does not raise competition concerns in the European Economic Area.

The unique digital code

Subject to users’ consent, the joint venture will create a unique digital code on consumers’ mobile internet or landline users. This code will allow operators, brands and the media to recognize the various users connected to their sites or apps using a pseudonym, and therefore to group them by categories or to adapt the contents offered according to specific user groups. The European Antitrust states that based on the investigations carried out, the notified agreement would not significantly reduce competition on the markets of France, Germany, Italy and Spain on the supply of digital identification services for targeted advertising or optimization of site content – the press release continues – (n) on mobile telecommunications services, on fixed internet connection supply services, n on the retail supply of audiovisual services or advertising space.

The reason for the green light

Also according to the Community executive, even after the creation of the joint venture, a sufficient number of rival services would remain. The jv could not and would not have an incentive to exclude other advertisers or to limit the services of rival telecom operators. The alliance operators would also have no incentives or the ability to force TV broadcasters to subscribe to these digital identification services. Finally, the European Commission has considered that the joint venture does not increase the risk of coordination between the operators involved in the initiative. Consequently, not finding any risks within the European economic area, the Antitrust has decided to give the go-ahead without imposing any restrictions or asking for particular commitments.