THE DIGITAL MONOPOLY RISKS TO BANKRUPT THE ADVERTISING BUSINESS.

According to the text of the bill, it is planned to create a "single operator" in Russia. The firm will oversee all digital media hosted in major municipalities. According to Kiryanov, many advertising companies in Russia are owned by foreigners. That is, they have a theoretical opportunity to influence the Russian consumer through digital advertising on transport and city streets.

According to the head of the Duma Committee for the protection of competition Valery Hartung, the amendments can destroy the existing industry. Moreover, scandals and public protests may result from monopolization of the market.

The draft law was adopted in the first reading by a majority of votes (265 deputies voted in favor). However, 56 deputies from United Russia, as well as members of factions from other political parties, did not vote "for".

The advertising business, for which what is happening reminded of the raider seizures of the mid-1990s, is now asking a number of questions. First of all, it is unclear to whom the legislator plans to transfer control? Will municipalities still be able to monitor the installation of structures in cities?

Experts predict that the initiative adopted in the interests of security will eventually turn out to be a factor of mass bankruptcies in the advertising market. First of all, it may affect regional business and city budgets replenished by the rental of advertising media.

The Association of Outdoor Advertising Operators (NAVK) has already spoken out against the bill. 9 out of 11 organizations belonging to the NAVK signed a resolution demanding to abandon further adoption of the law.

Russ Outdoor and the affiliated Advance Group did not sign the document. The reason for this could be that only Russ Outdoor meets the requirements for the future "monopolist". In 2021, the company received about 5.3 billion rubles. At the same time, digital outdoor advertising accounts for only 44% of the company's revenues.