Google to change global advertising practices in landmark antitrust deal

Google is the first US tech giant to agree to make changes to its huge advertising business. (File/AFP)
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Updated 07 June 2021
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Google to change global advertising practices in landmark antitrust deal

  • After 220 million euros fine imposed by France, Google said it would make changes to its global advertising business.
  • Google made commitments to improve the way Ad Manager services worked with rival ad servers.

PARIS: Google said it would make changes to its global advertising business to ensure it did not abuse its dominance, bowing to antitrust pressure for the first time in a landmark settlement with French authorities.

The deal with the French competition watchdog could help rebalance the power over advertising in favor of publishers, which held sway over the business in the pre-Internet era but lost control with the rapid rise of Google and Facebook.

The settlement, which was announced on Monday and also saw Google fined 220 million euros ($268 million), is the first time the US tech giant has agreed to make changes to its huge advertising business, which brings in the bulk of its revenue.

“The decision to sanction Google is of particular significance because it’s the first decision in the world focusing on the complex algorithmic auction processes on which the online ad business relies,” said France’s antitrust chief Isabelle de Silva.

The watchdog found that Google’s ad management platform for large publishers — Google Ad Manager — favored the company’s own online ad marketplace — Google AdX — where publishers sell space to advertisers in real-time.

Ad Manager provided AdX with strategic data such as the winning bidding prices, while AdX also enjoyed privileged access to requests made by advertisers via Google’s ad services, the authority said.

AdX, in turn, exchanged data more smoothly with Ad Manager than it did with other advertising management platforms, the watchdog added. Such platforms are crucial for publishers to manage and sell advertising space.

Under the terms of the settlement, Google made commitments to improve the way Ad Manager services worked with rival ad servers and ad space sales platforms, the French watchdog said. Some changes would be implemented by the first quarter of 2022, it said, adding that Google would not appeal the decision.

Google also said it had agreed to make it easier for publishers to use its data and tools.

“We will be testing and developing these changes over the coming months before rolling them out more broadly, including some globally,” the company added.

’RIGHTLY SANCTIONED’

Many publishers globally have been infuriated over the ad practices employed by the tech giants, whose success relies on the trove of data they have amassed over the years. The French antitrust authority said its decision opened the way for publishers who felt disadvantaged to seek damages from Google.

Most of Google’s sales come from search and YouTube ads. But last year about $23 billion was tied to helping publishers sell ads, drawing antitrust scrutiny to the connections between Google’s businesses, plus calls from some critics to break up the company.

French Finance Minister Bruno Le Maire welcomed the watchdog’s decision.

“The practices put in place by Google to favor its own advertising technologies have affected press groups, whose business model is heavily dependent on ad revenues,” he said.

“These are serious practices and they have been rightly sanctioned.”

It launched its investigation in 2019 following a complaint from News Corp., French news publishing group Le Figaro and Belgian press group Rossel.

News Corp. has since struck a global news deal with Google in February in one of the most extensive deals of its kind with big tech.

“We haven’t been involved in the case in France since we concluded our deal with Google in February, but we remain pleased by the progress of our global partnership, and are hopeful for a long and fruitful relationship in the years ahead,” a spokesman for News Corp. said.

Groupe Le Figaro declined to comment while Rossel did not immediately respond to a request for comment.


US State Department Arabic spokesperson resigns in opposition to Gaza policy

Updated 59 min 23 sec ago
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US State Department Arabic spokesperson resigns in opposition to Gaza policy

  • Hala Rharrit is at least the third person to resign from the department over the issue

WASHINGTON: The Arabic language spokesperson of the US State Department has resigned, citing her opposition to Washington’s policy related to the war in Gaza, in at least the third resignation from the department over the issue.
Hala Rharrit was also the Dubai Regional Media Hub’s deputy director and joined the State Department almost two decades ago as a political and human rights officer, the department’s website showed.
“I resigned April 2024 after 18 years of distinguished service in opposition to the United States’ Gaza policy,” she wrote on social media website LinkedIn. A State Department spokesperson, asked about the resignation in Thursday’s press briefing, said the department has channels for its workforce to share views when it disagrees with government policies.
Nearly a month earlier, Annelle Sheline of the State Department’s human rights bureau announced her resignation, and State Department official Josh Paul resigned in October.
A senior official in the US Education Department, Tariq Habash, who is Palestinian-American, had stepped down in January.
The United States has come under mounting criticism internationally and from human rights groups over its support for Israel amid Israel’s ongoing assault in Gaza that has killed tens of thousands and caused a humanitarian crisis.
There have been reports of signs of dissent in the administration of President Joe Biden as deaths continue to grow in the war.
In November, more than 1,000 officials in the US Agency for International Development (USAID), part of the State Department, signed an open letter calling for an immediate ceasefire. Cables criticizing the administration’s policy have also been filed with the State Department’s internal “dissent channel.”
The war has also caused intense discourse and anti-war demonstrations across the United States, Israel’s most important ally.
Palestinian Islamist group Hamas attacked Israel on Oct. 7, killing 1,200 people, according to Israeli tallies. Israel has killed over 34,000 people in Hamas-governed Gaza, according to Gaza’s health ministry, leading to widespread displacement, hunger and genocide allegations that Israel denies.


Burkina Faso suspends BBC, VOA radio broadcasts over killings coverage

Updated 26 April 2024
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Burkina Faso suspends BBC, VOA radio broadcasts over killings coverage

  • Authorities handed two-week suspension for covering of report accusing the army of extrajudicial killings
  • Human Rights Watch report says military executed about 223 villagers, including at least 56 children

LONDON: Burkina Faso has suspended the radio broadcasts of BBC Africa and the US-funded Voice of America (VOA) for two weeks over their coverage of a Human Rights Watch (HRW) report accusing the army of extrajudicial killings, authorities said late on Thursday.
In the report based on its own investigation, the rights watchdog said the West African country’s military summarily executed about 223 villagers, including at least 56 children, in February as part of a campaign against civilians accused of collaborating with jihadist militants.
HRW said the Burkinabe army has repeatedly committed mass atrocities against civilians in the name of fighting terrorism, and it called on authorities to investigate the massacres.
The country’s communication council said HRW’s report contained “peremptory and tendentious” declarations against the army likely to create public disorder and it would suspend the programs of the broadcasters over their coverage of the story.
Authorities also said in a statement they had ordered Internet service providers to suspend access to the websites and other digital platforms of the BBC, VOA and Human Rights Watch from Burkina Faso.
“VOA stands by its reporting about Burkina Faso and intends to continue to fully and fairly cover events in that country,” Acting VOA Director John Lippman said in a statement.
“The Voice of America strictly adheres to the principles of accurate, balanced and comprehensive journalism, therefore, we ask the government of Burkina Faso to reconsider this troubling decision.”
HRW conducted its investigation after a regional prosecutor said in March that about 170 people were executed by unidentified assailants during attacks on the villages of Komsilga, Nodin and Soro.
Burkina Faso is one of several Sahel nations that have been struggling to contain Islamist insurgencies linked to Al-Qaeda and Islamic State that have spread from neighboring Mali since 2012, killing thousands and displacing millions.
Frustrations over authorities’ failure to protect civilians have contributed to two coups in Mali, two in Burkina Faso and one in Niger since 2020.


Russia arrests Forbes reporter over Bucha posts

Updated 26 April 2024
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Russia arrests Forbes reporter over Bucha posts

  • Sergei Mingazov was detained with the accusation of spreading false information about the army

MOSCOW: Russia has arrested a journalist from the Russian edition of Forbes magazine for social media reposts over accusations of Russian atrocities in the Ukrainian town of Bucha, his lawyer and Forbes said on Friday.
Rights groups say hundreds of Russians have been arrested, fined and jailed for criticizing Russia’s offensive on Ukraine under tough military censorship laws.
Russian authorities have particularly targeted people for comments on Bucha, the Kyiv suburb where Russian troops have been accused of massacring civilians.
Moscow has rejected those charges and accused Kyiv and the West of staging the scenes of dead civilians and testimonies of torture.
“Sergei Mingazov was detained and is being held in a temporary detention center” in the Far East city of Khabarovsk, the journalist’s lawyer Konstantin Bubon said in a Facebook post.
He faces up to 10 years in prison under charges of spreading “false information,” Bubon said.
“In short, for reposting a publication about the events in Bucha” on a Telegram channel, he added.
His Telegram channel, which has around 430 followers, features a number of reposts from April 2022 that allege Russian troops killed civilians in Bucha.
Russian forces controlled the Kyiv suburb for a month at the start of the campaign.
Pictures of dead civilians found on the streets made front pages around the world, triggering outrage in the West.
Forbes Russia said Friday it had not been able to contact Mingazov.
A Russian reporter was last month sentenced to seven years in jail for articles on alleged Russian war crimes, including at Bucha.
And opposition politician Ilya Yashin is serving eight and a half years in jail on similar charges after discussing the claims in a YouTube video.
Moscow has outlawed criticism of its offensive and has made independent reporting on the campaign effectively illegal.
Numerous foreign and Russian reporters have left the country over the last two years under the fear of arrest.
The Reporters Without Borders advocacy group said Russia arrested 34 journalists during 2023.
They included Wall Street Journal reporter Evan Gershkovich, a US citizen, and joint US-Russian citizen Alsu Kurmasheva — both of whom are still in pre-trial detention.


Saudi Vision 2030 changed everything, says CEO of Publicis Communications KSA

Updated 26 April 2024
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Saudi Vision 2030 changed everything, says CEO of Publicis Communications KSA

  • Adel Baraja brought over 2 decades of global experience
  • Role includes overseeing the group’s Saudi operations, fostering talent

DUBAI: Advertising and marketing network Publicis Groupe appointed Adel Baraja as CEO of Publicis Communications Saudi Arabia in late February as part of its efforts to strengthen its presence in the Kingdom.

Publicis Communications is the creative communications arm of the network housing agencies such as Leo Burnett and Saatchi & Saatchi.

The appointment reinforced Publicis Groupe Middle East’s commitment to accelerating growth within Saudi Arabia while enhancing collaboration and expanding capabilities to deliver transformative work for clients.

Baraja brought with him 22 years of global advertising and brand-building experience.

He had started his professional life in engineering before realizing it was not for him.

He told Arab News: “I wanted to be with clients and that’s when I took my first pivot toward client management (and) sales, and I found my calling in marketing.”

He spent his early days working across advertising agencies in Germany, Spain, and Portugal, before returning to Saudi Arabia where he first interacted with Publicis Groupe. At the time he was hoping to find a job at Leo Burnett, but turned out to be a better fit for one of its clients, Saudi Telecom Company.

He then took a break from advertising agencies to work across industries in companies like Dow Chemical and Volkswagen.

And then, he said, came a “critical moment” in his career.

He added: “I never considered (working in) government before, but six months prior Vision 2030 was introduced, and that was everything.

“It was a meticulous plan — a road map towards something that I had never experienced or seen before. So, I got my first role in government in 2017.”

He led the newly established promotion and nation-branding sector at the Saudi Export Development Authority, growing the Saudi Made portfolio of companies from 20 to more than 2,000 companies during his tenure.

He also held the position of deputy minister of investment promotion at the Ministry of Investment before joining Publicis Groupe Middle East.

Communications had always been a “savvy topic” in the Kingdom, but it was heavily focused on and driven by the private sector, he said.

Vision 2030 changed it all, and “the government sector became a big spender in the communication sector and a driver to creativity,” he added.

With these changes, the demand for local talent is higher now than ever before, and fostering that talent is a strong priority for Baraja and Publicis Groupe.

Baraja is tasked with overseeing the integrated growth strategy of Publicis Communications in his new role, as well as working with educational institutions to empower Saudi youth for careers in advertising, media, and digital marketing.

He said that Bassel Kakish, CEO at Publicis Groupe Middle East and Turkiye, told him that the company needs to be developing and fostering local talent, hiring more locally, and ensuring gender equality, training more women in the advertising and creative industries.

Baraja said: “We are competing against other industries to get that share of talent, so we need to promote our industry and our company.”

Looking ahead, the company is investing in the future, which means increased focus on technology through acquisitions such as that of tech company Epsilon in 2020 and e-commerce company Corra in 2023.

Publicis last year announced the acquisition of a full stake in Publicis Sapient AI Labs, an artificial intelligence research and development joint venture launched in 2020 which aims to strengthen Publicis Sapient’s data and AI capabilities.

Baraja added: “That kind of investment shows the focus toward the future and the transformation of the business.”

There is a lot of discussion around AI replacing marketing and agencies, he said, but he believes: “We are well equipped to address this challenge and to prove that we can deliver even better communications, and better and well-designed campaigns and media performances.”


TikTok CEO to fight US ban law

Updated 24 April 2024
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TikTok CEO to fight US ban law

WASHINGTON: TikTok’s chief executive said on Wednesday that the company expects to win a legal challenge to block legislation signed into law by US President Joe Biden that he said would ban the popular short video app used by 170 million Americans.

“Rest assured — we aren’t going anywhere,” CEO Shou Zi Chew said in a video posted moments after Biden signed the bill that gives China-based ByteDance 270 days to divest TikTok’s US assets or face a ban. “The facts and the Constitution are on our side and we expect to prevail again.”

Biden’s signing sets a Jan. 19 deadline for a sale — one day before his term is set to expire — but he could extend the deadline by three months if he determines ByteDance is making progress. Biden is seeking a second term against former President Donald Trump.

In 2020, Trump was blocked by the courts in his bid to ban TikTok and Chinese-owned WeChat, a unit of Tencent, in the United States.

Chew added: “Make no mistake — this is a ban on TikTok.” He emphasized that TikTok would continue to operate as the company challenges the restrictions.

Driven by widespread worries among US lawmakers that China could access Americans’ data or surveil them with the app, the bill was overwhelmingly passed late on Tuesday by the US Senate. The US House of Representatives approved it on Saturday.

The four-year battle over TikTok is a significant front in a war over the internet and technology between Washington and Beijing. Last week, Apple said China had ordered it to remove Meta Platforms’ WhatsApp and Threads from its App Store in China over Chinese national security concerns.

TikTok is set to challenge the bill on First Amendment grounds and TikTok users are also expected to again take legal action. A US judge in Montana in November blocked a state ban on TikTok, citing free-speech grounds.

The American Civil Liberties Union said banning or requiring divestiture of TikTok would “set an alarming global precedent for excessive government control over social media platforms.”

However, the new legislation is likely to give the Biden administration a stronger legal footing to ban TikTok if ByteDance fails to divest the app, experts say.

If ByteDance failed to divest TikTok, app stores operated by Apple, Alphabet’s Google and others could not legally offer TikTok or provide web hosting services to ByteDance-controlled applications or TikTok’s website.

The bill would also give the White House new tools to ban or force the sale of other foreign-owned apps it deems to be security threats.

Democratic Senator Ron Wyden said he was concerned the bill “provides broad authority that could be abused by a future administration to violate Americans’ First Amendment rights.”

Republican presidential candidate Donald Trump said on Monday that President Joe Biden was “pushing” for a ban on TikTok and would be the one responsible if a ban were imposed, urging voters to take notice.

Biden’s re-election campaign plans to continue using TikTok, a campaign official said on Wednesday. Trump’s campaign has not joined TikTok.

Biden signed legislation in late 2022 that barred US government employees from using TikTok on government phones.