The UK competition regulator has accused Google of engaging in anti-competitive practices within the market for online ads, a move that echoes similar investigations in both the US and the EU.
According to the Competition and Markets Authority (CMA), Google has “abused its dominant position” in online advertising, causing harm to thousands of UK publishers and advertisers.
The CMA’s findings suggest that the majority of these parties rely heavily on Google’s ad tech services for buying and selling ad space, but the tech giant has stifled competitors from offering viable alternatives.
The CMA’s investigation focuses on three key areas of Google’s operations: its ownership of two tools for purchasing ad space, its control over an ad platform for publishers that helps manage online ad space, and its dominance over an ad exchange, AdX, which functions similarly to a stock exchange by connecting advertisers and publishers.
“The CMA is concerned that Google is leveraging its dominance in this sector to favor its own services,” the regulator stated.
“By doing so, Google undermines competition, preventing rivals from providing publishers and advertisers with more innovative and competitive services that could help grow their businesses.”
The provisional findings, released on Friday, claim that since 2015, Google has exploited its dominant position through its buying tools and its ad inventory management system to reinforce the strength of its ad exchange while insulating it from competition.
Additionally, the CMA asserts that Google has blocked rival ad inventory tools, known as publisher ad servers, from competing effectively with its own product, DoubleClick for Publishers.
Google will have the opportunity to respond to these allegations before the CMA reaches its final decision.
If found guilty, the CMA could impose a penalty of up to 10% of Google’s global revenue, with the exact amount depending on the severity of the violation. The regulator also has the power to issue legally binding orders to stop the anti-competitive behavior.
In response, Google described the CMA’s case as “flawed.”
“Our advertising technology tools support websites and apps in funding their content, while helping businesses of all sizes reach new customers,” said Dan Taylor, Google’s vice president of global ads.
“The crux of this case rests on misinterpretations of the ad tech sector. We disagree with the CMA’s conclusions and will provide our response accordingly.”
Investigations into Google’s ad tech operations are also underway by the US Department of Justice (DoJ) and the European Commission.
In June 2023, EU regulators suggested that Google might be required to divest part of its ad tech business to address competition concerns, while the DoJ is preparing to take Google to court over claims of monopolizing the ad tech market.
Just last month, a US federal judge ruled that Google had unlawfully monopolized control over the online search market, a decision that could result in the partial dismantling of the company.
