3 minute read
The Client: A telecommunications company with operations in California
The Business Question: How should we adapt our strategy in an evolving privacy and antitrust environment?
Our client competed in a digital advertising space dominated by a few companies. Executives wanted to answer two intersecting questions: Would an upcoming referendum on bolstering California privacy law – meant to protect consumer data – end up strengthening the position of market leaders? And, if so, were antitrust enforcers likely to act in a way that would affect the competitive capability of our client as well as those few companies at the top? Answering those questions would help the client decide whether and how to alter its business strategy.
Company leaders were wrestling with questions at the intersection of privacy, data and antitrust enforcement and shifting consumer attitudes. We shared the past, current and likely future trajectory of privacy laws to contextualize the push for the California Privacy Rights Act, with a focus on how these trends had affected and would affect the client’s business and competitive capabilities in the digital advertising ecosystem. We also drew on our antitrust experience and knowledge to assess the likelihood of enforcement attention on market leaders.
After a thorough risk assessment, the company decided to sell a business most affected by California privacy law, building on a long relationship between that business and the buyer. The sale enabled our client to invest time and resources elsewhere.