EACA Welcomes Increased Transparency in Platform to Business Relations

Online platforms will have to become more transparent when trading with businesses, according to a proposal released by the European Commission today.

The regulation would introduce new rules for platforms obliging them to simplify their terms and conditions, to lay out the main parameters for ranking and to provide for redress mechanisms.

Advertising and media agencies work closely with platforms, such as Google and Facebook, and must be able to rely on fair, transparent and balanced trading practices. EACA therefore endorses the proposed rules on terms and conditions, ranking and redress.

According to the proposal, however, platforms would still be able to deny access to certain metrics to business partners, forcing agencies to rely on platforms’ self-declared numbers.  EACA therefore calls on the European Commission to include a provision which would allow businesses to employ third party auditors to verify platforms’ metrics.

 Dominic Grainger, President of EACA said, “Platforms provide a unique environment for brands to reach consumers and markets with relevant advertising. There is a value exchange between the consumers of platforms who enjoy their functions, information, and utility; platform owners who build their businesses on advertising revenues; and brands who provide monetization in support of their need to advertise.

To maintain a trust-based relationship, platforms must increase their transparency and share more metrics with their advertising clients so we can objectively assess the effectiveness of campaigns and consider investment decisions".