The UK’s Competition and Markets Authority (CMA) has issued a formal objection against Google, accusing the tech giant of anticompetitive practices in its advertising technology. The regulator’s preliminary findings suggest Google’s dominance in online display advertising is stifling competition and unfairly favoring its own ad tech services.
According to the CMA, the vast majority of the UK’s publishers and advertisers rely on Google’s technology to buy and sell ad space, with the sector generating £1.8 billion annually as of a 2019 study. The regulator raised concerns that Google is engaging in “self-preferencing,” using its dominant position to prioritize its own services over competitors in the ad tech market.
Juliette Enser, interim executive director of enforcement at the CMA, stressed the importance of fair competition in digital advertising, noting that many businesses rely on ads to keep their content free or affordable. She added that millions of consumers across the UK benefit from these ads, which are key to supporting the buying and selling of goods and services.
Google has not yet responded to a request for comment on the allegations.
This is not the first time the tech giant has faced scrutiny over its dominance in the ad tech sector. Last year, the European Union charged Google with similar antitrust violations, even suggesting the possibility of breaking up parts of its business. In the U.S., a federal judge recently ruled that Google held a monopoly in search and text advertising, drawing comparisons to the famous antitrust case against Microsoft over its Windows operating system.
The CMA’s Friday decision alleges that since 2015, Google has misused its control over ad-buying tools like Google Ads and DV360, as well as its publisher ad server DoubleClick For Publishers, to strengthen the market position of its ad exchange, AdX. The CMA found that Google’s AdX, a platform for buying and selling ad space, charges advertisers the highest fees, with Google taking about 20% of each bid processed.
Credit: CNBC (Text Excluding Headline)
