Google to Require Government Permission to Provide Advertising Services for Financial Products in Spain – Regulation Bitcoin News
Google, the web search and software monolith, has announced that it will require permission from government entities to lend advertising services to financial firms in Spain. This measure, which was also implemented in the UK in 2021, is expected to be rolled out to other countries in the coming months.
Google will require government permission from advertisers
Google, the software and web search giant, will start taking steps to combat possible financial fraud using the company’s advertising platform in Spain. Google announcement it will start requiring customers who wish to advertise financial products to obtain government authorization issued by the Spanish securities regulator (CMNV) or the Bank of Spain, the country’s central bank.
At the same time, Google will also ask these companies to complete its ad verification program, which is expected to start this month. Application of the other new measures is expected to begin in January 2023. Regarding the purpose of the new requirements to apply on Spanish soil, Google said:
Our goal is to create a new layer of security against fraud, which will further improve the protection of our network against financial fraud.
Additionally, Google said this new policy will help “ensure a safe, healthy, and sustainable advertising ecosystem.”
Previous implementations and expansion
Spain is among a group of countries that are piloting these restrictions in order to gain access to the company’s advertising platform. The first such measure was applied in the UK in 2021 and reportedly produced positive results. Similarly, advertisers must obtain approval from the Financial Conduct Authority in order to advertise financial products. Google said this produced “a very noticeable drop” in reports of ads that may promote financial scam schemes.
Spain will be the second country in which these restrictions will be implemented, and the company plans to adopt the same approach in other countries in the coming months. The CNMV has been active in due diligence regarding advertised cryptocurrency products, requiring notification of any of these campaigns targeting over 100,000 people at least 10 days prior to launch.
Influencers with more than 100,000 social media followers involved in such cryptocurrency advertising campaigns must also inform regulators of their plans and have a responsibility to explain the risks of advertised investments to their followers.
What do you think of Google’s new advertising requirements for financial products in Spain? Tell us in the comments section below.
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