Unified Digital Signage Operator in Russia

Main article: Advertising (Russian market)

2022

The State Duma rejected the bill on a single operator of outdoor advertising and ads on the Internet

The State Duma at a plenary meeting on November 8, 2022 rejected the bill on a single Digital Signage operator. MPs voted unanimously in favour of the decision.

We discussed this issue in sufficient detail at the Council of the State Duma. According to all factions, the bill should be rejected. The State Duma makes a responsible decision, - said State Duma Speaker Vyacheslav Volodin.

The State Duma rejected the bill on a single outdoor advertising operator

If the bill was adopted (its author is deputy Artem Kiryanov), the government could receive the authority to create a single Digital Signage operator that will manage and control all advertising screens and classifieds. Advertisers, advertisers and operators of advertising systems must provide the service with information about Internet advertising within 20 days from the date of its appearance on the network.

Industry officials opposed the bill. In their opinion, the creation of a single operator could lead to the disorganization of business processes and an increase in the cost of document management.

The resolution against Kiryanov's bill was signed by nine members of the Billboard Owners Association. According to RBC, the Russ Outdoor group did not sign the resolution, which could claim the role of an operator, since it meets all the requirements listed in the bill: the company is a Russian legal entity and a "backbone organization," and it owns its own advertising structures at transport infrastructure facilities. Russ Outdoor considered Kiryanov's initiative significant in connection with the events in Ukraine, but stressed that the project needs to be finalized.

As the founder of the Brusnika marketing agency Tekhi Polonskaya noted, the largest players in the digital billboard market - Russ Outdoor and Gallery - could benefit from the bill, but small businesses would receive new difficulties.^[1]

Maksut Shadayev criticized the law on a single operator of Digital Signage

On August 10, 2022, it became known about the position of the Ministry of Digital Development, Communications and Mass Media of the Russian Federation regarding the idea of ​ ​ creating a single Digital Signage operator in the country. According to the head of the department Maksut Shadayev, giving one company preferences for placing both outdoor advertising on digital advertising structures and ads of individuals on electronic message boards on the Internet will actually lead to monopolization and degradation of this market.

Shadayev sent the corresponding letter to the Federal Antimonopoly Service (FAS), RBC writes about this with reference to the document. His sending to the antimonopoly departments was confirmed by the representative of the Ministry of Digital Science. The minister believes that the content of this bill goes beyond the law on advertising in an attempt to regulate ad services that are already regulated by laws on information and personal data.

Maksut Shadayev

The adoption of such a bill will provoke monopolization of the Digital Signage market, since the minimum number of companies will meet the requirements specified in it. Maksut Shadayev noted the cost of implementing the bill. The head of the Ministry of Finance also believes that in the context of the monopolization of the market, the costs of advertisers will increase, and after them - the cost of advertised goods and services.

In his letter, Shadayev proposed to delete from the bill the norms aimed at regulating the work of classifications and ad services.

More than 60 organizations criticized the bill on a single Digital Signage operator, including Avito, Gallery, Nord Star, Sunlight Outdoor. The representative of Avito said that the adoption of the bill and the inclusion of classifications in it would be a disaster for the industry and a signal of the lack of dialogue with Russian business.^[2]

Sber, Digital Economy and Skolkovo opposed the law on a single advertising operator

In August 2022, ANO Digital Economy, Yandex, Sber, the Skolkovo Foundation and Avito sent letters to State Duma Chairman Vyacheslav Volodin opposing the law on a single advertising operator. According to the authors of the appeal, the creation of a single operator of digital advertising structures goes beyond the subject of legal regulation of the law "On Advertising," creates the risks of creating a monopoly and disseminating inaccurate information on the Internet in violation of the law.

As they write Sheets"" with reference to the letter of the ANO "Digital Economy," the activities of individuals to search for counterparties, as well as to sell or buy goods, works and services for personal and household purposes are carried out in accordance with the Constitution and the provisions of the Civil Code. Thus, they are not included in the scope of the law on advertising, but if the bill is adopted, it will regulate these areas, the authors of the letter explained.

Sber, Digital Economy and Skolkovo opposed the law on a single advertising operator

The bill, creating unreasonable preferences for the business of a single operator, does not have additional benefits for the state, market and citizens. Taking into account the above, the bill is not supported by the bank, - noted in Sberbank.

Yandex considers the proposed regulation of classifications redundant and stressed that it is important to discuss such initiatives with all IT market players and take into account the balance of interests of all parties.

Amendments on a single operator on July 8, 2022 were submitted to the State Duma by deputy Artem Kiryanov, a week later they were adopted in the first reading.

According to the amendments, digital outdoor Signage and electronic ads of individuals should be placed only through a resource that will be under the control of a single operator. He will also check whether advertising complies with the law, set prices for placement and protect personal data of users.^[3]

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