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The
Competition and Markets Authority (CMA) said it believed Google
was using anti-competitive practices in open display ad tech
through the preference of its own ad exchange, which could be
harming thousands of British publishers and advertisers.
"We've provisionally found that Google is using its market power
to hinder competition when it comes to the ads people see on
websites," said Juliette Enser, the CMA's interim executive
director of enforcement.
"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."
Google said it disagreed with the CMA's view and would respond
accordingly.
"Our advertising technology tools help websites and apps fund
their content, and enable businesses of all sizes to effectively
reach new customers," said Google's VP of Global Ads Dan Taylor.
"Google remains committed to creating value for our publisher
and advertiser partners in this highly competitive sector. The
core of this case rests on flawed interpretations of the ad tech
sector."
The U.S Department of Justice and the European Commission are
also investigating Google's activities in ad tech.
In June 2023, EU regulators said Google may have to sell part of
its adtech business to address its concerns. Google said in
December that such a step would be "disproportionate".
The CMA said it had provisionally found that since at least 2015
Google had been abusing its dominance on both the buying and
selling sides of the advertising supply chain to favor its own
ad exchange AdX in matching auctions.
The regulator can impose a fine of up to 10% of a company’s
global turnover, with the amount depending on the seriousness of
the infringement. It can also issue legally binding directions
to bring the infringement to an end.
Representations from Google will now be considered, the CMA
said, before it reaches a decision on what action to take.
(Reporting by Paul Sandle in London and Radhika Anilkumar in
Bengaluru; Editing by Savio D'Souza, Kim Coghill and Louise
Heavens)
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