Google and Facebook accounted for an estimated 54 percent of digital advertising revenues in the U.K. in 2017, according to the report.
“In addition to the prominent position occupied by the digital platforms, there are a number of market features that may present barriers to entry and expansion,” the report said.
The CMA said on Wednesday it is considering whether to undertake work in the digital advertising sector but added its ability to launch new projects is “heavily dependent on the outcome of EU Exit negotiations.”
Like many other organizations in the British government, the CMA is facing uncertainty over its role once the U.K. leaves the European Union. Lawmakers rejected Theresa May’s Brexit deal in a resounding defeat Tuesday and are set to vote on an extension to the Brexit deadline, currently March 29, Thursday night. In his letter, Hammond acknowledged the CMA would have “increased responsibility for ongoing competition cases with a European dimension” after Brexit.