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Google To Change Global Advertising Practices

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Google Inc European Headquarters

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 favour 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, announced on Monday and included a fine of 220 million euros ($268 million), was the first time the U.S. tech giant had agreed to make changes to its ads 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 French settlement alone may not meaningfully affect industry market share, according to ad-supported media companies and Google’s advertising rivals. But they hope it inspires similar antitrust cases in the United States and other jurisdictions.

“This decision is a key milestone to re-energize competition and innovation in the ad tech space, and publishers, who are the primary victims of Google practices, will ultimately benefit from it, but the battle is only beginning,” said Arnaud Creput, chief executive of Smart, which provides ad tech to publishers.

France’s case did not address, for example, Google’s control of its dominant search and YouTube properties to thwart competition. It also did not discuss user privacy curbs Google is to introduce on the web that could benefit it at the expense of competitors.

Instead, the watchdog focused on the ties between Google Ad Manager, used by publishers to auction ad space, and Google AdX, one of several marketplaces which can manage auctions.

Google grew the market share of both services by sharing strategic data across them and barring them from operating as smoothly as rival systems, the authority said.

The privileged relationship “deprived” publishers from benefiting from potential industry competition, it said.

Under the terms of the settlement, Google committed for three years to level the playing field better for AdX with an independent trustee monitoring the situation, 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.

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

The ad practices of tech giants, whose success relies on the trove of data they have amassed over the years, have infuriated many publishers globally. 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 decision.

“The practices put in place by Google to favour 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 struck a global news deal with Google in February, 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 News Corp spokesman said.

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Fintech

From Trading to Credit: Robinhood Launches No-Fee Credit Card with Gold Membership Perks

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Robinhood

Robinhood Markets Inc. has announced the launch of its highly anticipated no-fee credit card and it was accompanied by exclusive perks for Gold membership subscribers.

This bold move is a step in the company’s mission to evolve into a comprehensive financial services provider.

The Robinhood Gold Card boasts an array of enticing features. Chief among them is the absence of annual costs or foreign transaction fees, positioning it as an attractive option for consumers seeking financial flexibility.

Moreover, cardholders stand to benefit from a generous 3% cash back on all categories of purchases, a competitive offer in comparison to industry rivals.

Vlad Tenev, CEO of Robinhood, emphasized the company’s commitment to innovation and industry leadership in an interview.

He expressed the intention to not merely introduce a credit card, but to revolutionize the market with a product that sets new standards for customer satisfaction and financial empowerment.

The announcement has sparked enthusiasm among investors, with Robinhood’s shares witnessing a 6.9% surge in early market trading following the news.

This surge further underscores the market’s confidence in the company’s strategic direction and its potential to disrupt traditional financial services.

Beyond the credit card venture, Robinhood has been steadily diversifying its offerings. With the introduction of retirement products and the expansion of commission-free trading services internationally, the company is positioning itself as a formidable player in the global finance landscape.

As Robinhood continues to innovate and expand its suite of services, its trajectory suggests a promising future as a leading force in democratizing access to financial tools and services.

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Telecommunications

NCC Files Copyright Infringement Charges Against MTN Nigeria and Others

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Karl O Toriola - Investorsking.com

The Nigerian Copyright Commission (NCC) has taken legal action against MTN Nigeria Communications Ltd. and four individuals, including its Chief Executive Officer, Karl Toriola, over alleged copyright infringement.

The charges, filed in the Federal High Court, Abuja Division, revolve around the unauthorized use of musical works belonging to artist Maleke Idowu Moye.

According to the NCC, the defendants are accused of offering for sale, selling, and trading musical works of Maleke without his consent between 2010 and 2017. These works were allegedly used as Caller Ring Back Tunes without proper authorization.

The musical pieces in question include popular tracks such as “911,” “Minimini-wanawana,” and “Stop racism,” among others.

The commission further alleges that the defendants distributed these musical works to subscribers without authorization, infringing upon the rights of the artist.

The charges are based on provisions of the Copyright Act, Cap. C28, Laws of the Federation of Nigeria, 2004.

As the case awaits assignment to a judge and a fixed date for mention, it marks a significant development in the ongoing efforts to uphold copyright protection in Nigeria’s telecommunications sector.

This legal action underscores the NCC’s commitment to safeguarding the intellectual property rights of artists and creators within the country.

MTN Nigeria, a major player in the telecommunications industry, now faces a legal battle that could have broader implications for how intellectual property rights are respected and enforced within Nigeria’s digital landscape.

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Telecommunications

MTN’s MoMo Sees 32.2% Surge in Transaction Volumes

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MTN Nigeria - Investors King

MTN Group’s mobile money platform, MoMo, has experienced a 32.2% surge in transaction volumes.

With 72.5 million active users, MoMo continues to solidify its position as a leading fintech service provider in Africa, tapping into the continent’s burgeoning mobile banking sector.

The company’s success underscores the growing trend of Africa’s young and tech-savvy population embracing mobile technology to address financial needs.

Mobile phones are increasingly becoming a tool for bridging gaps in services, particularly in banking, presenting a lucrative opportunity for wireless carriers like MTN to capitalize on the burgeoning fintech market.

MTN’s achievement comes as it finalizes a deal with Mastercard Inc., valuing its fintech business at an impressive $5.2 billion.

This strategic partnership further enhances MTN’s position in the digital finance space, positioning it for continued growth and innovation.

However, MTN is not alone in its fintech endeavors. Rivals such as Airtel Africa Plc, Safaricom Plc, and Vodacom Group Ltd. are also making strides in digital transformation, with plans to separate and monetize their fintech businesses in the long term.

Airtel Africa, for instance, is reportedly considering an IPO for its mobile money unit, indicating the high stakes and intense competition within the sector.

Despite the remarkable success in its fintech ventures, MTN faced challenges in its core telecommunications business, with service revenue growth slowing to 6.8%.

Inflation and currency devaluation in key markets, particularly Nigeria, impacted profitability, highlighting the complexities of operating in diverse African markets.

As MTN continues to expand its fintech footprint and invest in infrastructure to enhance connectivity across the continent, it remains poised to capitalize on the immense potential of Africa’s digital economy.

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