Google has come under fire from the Competition and Markets Authority (CMA), which has provisionally found that the tech giant is “abusing its dominant position” in the ad tech market.
The CMA’s investigation has provisionally found that a series of anti-competitive practices in open-display ad tech are causing harm to thousands of UK publishers and advertisers.
A statement of objections from the regulator sets out how Google may have broken competition law.
It says Google has been operating both its publisher ad server and buying tools in a way which uses its dominance in the open-display advertising market to favour its own ad tech services and
restricts competition in the UK market.
According to the investigation, the CMA found that the “vast majority” of publishers and advertisers use Google’s ad tech services to bid for and sell ad space online, with around £1.8 billion being spent each year on open-display ads (as of 2019).
It is concerned that Google is “actively” using its dominance in the sector to disadvantages competitors and “prevent them from competing on a level playing field”.
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Today’s news comes just days before Google’s US antitrust trial kicks off in America, while EU agencies are also investigating similar concerns.
“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 CMA’s interim executive director of enforcement, Juliette Enser.
“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 continued.
“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.”
Google will have a chance to make final representations in response to the CMA’s initial findings, before the regulator makes its final decision as to what steps will be needed to ensure all anti-competitive practices are stopped and that Google “does not engage in similar practices in the future”.
Commenting on the findings, Institute of Practitioners in Advertising (IPA) director general Paul Bainsfair said it “will continue to monitor [the situation] closely”.
“The IPA has always championed a competitive, pluralistic media landscape. As such, we have been carefully observing the CMA’s investigation, as well as parallel investigations in the US and EU,” he continued.
“Noting they are provisional, the CMA’s findings of ongoing ‘abuse of dominant positions through the operation of both publisher ad server and buying tools to restrict competition in the UK’ are at odds with the best interests of our members and the advertisers they operate on behalf of.”
Today’s findings also come in the wake of a £13.6 billion ($17.4 billion) class action lawsuit taken out against Google’s “vice-like grip” on online UK advertising, with a full trial expected to take place in 2025.