Kruse set certain conditions for such self-regulation, particularly the existence of “an effective transparency” and an “effective mechanism of sanctions.” Required to change a code of conduct to ensure that the user is informed and getting their approval for any custom online advertising (based on their browsing history.) He called for a “clear condemnation of the illegal practices that, unfortunately, are still used.”
The commissioner, who made these statements at a panel discussion with key industry leaders, issued a clear warning that it “must act quickly and responsibly.” If not, the alternative will be “a more interventionist approach.”
The debate was organized by the Interactive Advertising Bureau Europe, an employers representing over 5,000 companies involved in the digital sector. The starting point was the presentation of a study by consultancy McKinsey estimated at EUR 100,000 million annual benefits accruing to consumers in Europe and the U.S. in the form of free services through the Internet. A figure which, according to the consultant, could grow by 13% annually due to the introduction of broadband.
Also conclude that the benefits from the production of these services are estimated at 20,000 million euros annually. In light of these figures, McKinsey estimates that consumers account for 85% of the profits generated by the use of the services provided by the network (e-mail, search engines, information).
This benefit to consumers depends on the evolution of advertising revenues in Europe amounted to 15,000 million in 2009. The increase is tied to information about the needs and preferences of users. Hence the conflict between free services and privacy.
But the report warns that, at least for now, that revenue for the user can only be maintained if the suppliers have the necessary funding through online advertising. And that the introduction of payment services would severely restrict or discourage supply 40% of demand.
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