The advertising industry in the digital era: problems of GAFA Companies’ Competition and Potential Solutions

Digital advertising is evolving rapidly, transforming how businesses connect with their customers. Data-driven digital platforms are now being used, shifting from traditional media to more personalized campaigns. GAFA, which stands for Google, Apple, Facebook (Meta), and Amazon, are the key players behind this shift in digital advertising. They use algorithmic targeting and utilize large amounts of user data to keep their edge in the market. This influence really impacts how advertising strategies are developed today and brings up important issues about fair competition, data privacy, and transparency. This thesis looks into how digital advertising has evolved, the benefits that GAFA platforms have over others, and the difficulties that advertisers, government agencies, and consumers encounter. This study looks into how laws like the Digital Services Act (DSA), the Digital Markets Act (DMA), and the EU General Data Protection Regulation (GDPR) tackle the issues related to digital advertising. This paper discusses important issues like fairness, consumer safety, and the clarity of the process. The thesis looks into how regulation, competition, and technology interact to shape a clearer and more competitive digital advertising environment that encourages innovation and safeguards consumers.