UK Government accuses Google of abusing its dominance in the sector
The UK’s Competition and Markets Authority (CMA) has accused Google of abusing its dominant position in the digital advertising technology market.
The CMA is concerned that the vast majority of publishers and advertisers rely on Google’s ad tech to bid for and sell advertising space, but Google’s practices hinder competitors from offering more competitive services.
The tech giant could face a fine of up to 10% of its global annual turnover.
Enforcement interim executive director Juliette Enser accused Google of “using its market power to hinder competition”.
“Many businesses are able to keep their digital content free or cheaper by using online advertising to generate revenue. Adverts on these websites and apps reach millions of people across the UK – assisting the buying and selling of goods and services,” she said.
“That’s why it’s so important that publishers and advertisers – who enable this free content – can benefit from effective competition and get a fair deal when buying or selling digital advertising space.”
The digital advertising technology sector, or ‘ad tech stack’, is a system of intermediaries that help connect advertisers with publishers to sell online ad space on websites or apps.
Google controls important platforms like Google Ads, DV360, AdX, and DoubleClick For Publishers, and the CMA has accused the multinational corporation of unfair practices, like giving its own platform AdX special treatment in ad auctions, making it hard for competitors to compete.
Google denies this, claiming its tools help businesses and websites.
The CMA’s investigation follows similar scrutiny of Google’s practices by the US Department of Justice and the European Commission.
In an ongoing investigation, the US Department of Justice alleges that Google “unlawfully used the distribution agreements to thwart competition”.
Last month, a US court ruled that the tech company holds a monopoly on general search services and text ads and has broken antitrust law. Google plans to appeal the ruling.
A separate investigation by the European Commission into the way Google’s compliance with the new Digital Markets Act is also underway.
Regulators have accused Google of “gatekeeping” by promoting its own services above third parties in search results.
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