Panel: Google, Meta, LY Fail to Provide Sufficient Explanation on Online Ad Businesses; All 3 Firms Need to be More Transparent

Reuters file photo
A Google sign is seen near the company’s headquarters in Mountain View, Calif., in May 2019.

Google LLC, Meta Platforms Inc. and LY Corp. have failed to provide a sufficient explanation on the fairness of their online advertising businesses, a panel of experts for the Economy, Trade and Industry Ministry said.

The panel released the results of its evaluation on Thursday regarding the transparency and fairness of the online advertising businesses of the three companies.

The panel noted that the three companies need to carefully explain the standards and fairness of their commission fees in response to inquiries from advertising and media clients.

There were concerns about preferential treatment for their own companies and affiliates, however, the three firms reported that there is no preferential transactions.

The panel found they had not provided a full explanation that was objective and verifiable and called for the development of internal rules to prevent preferential treatment as well as the establishment of a system to monitor compliance.

The panel also agreed that online shopping malls, which aggregate online shopping sites, and app stores need to be more transparent to address concerns about preferential treatment.

It also said it is essential for a management system to be put in place.

The evaluation was conducted in accordance with the Law on Improving Transparency and Fairness of Digital Platforms.

The panel, comprised of experts in antimonopoly law and economics, had been interviewing the three companies since June.