The UK’s competition watchdog has accused Google of anti-competitive behaviour in the market for buying and selling ads on websites, in a move that follows similar investigations in the US and the EU.
The Competition and Markets Authority (CMA) said it had found that Google had “abused its dominant position” in online advertising to the detriment of thousands of UK publishers and advertisers.
The CMA said the vast majority of publishers and advertisers used Google’s advertising technology services to bid and sell advertising space, but the search firm prevented rivals from offering competitive alternatives.
The regulator has focused on Google’s role in three areas: its ownership of two tools for buying advertising space; its operation of an advertising platform for publishers that allows them to manage their online advertising space; and its control of an advertising exchange, AdX, that brings together advertisers and publishers, similar to matching buyers and sellers on a stock exchange.
“The CMA is concerned that Google is actively using its dominance in this sector to favour its own services,” the watchdog said. “Google is putting its competitors at a disadvantage and preventing them from competing on a level playing field to offer publishers and advertisers a better and more competitive service that supports their business growth.”
In its provisional findings published on Friday, the CMA concluded that since 2015 Google had abused its dominant market position by using its buying tools and publisher inventory tool to strengthen the position of its ad exchange platform and protect it from competition. It has also prevented rival ad inventory tools, known as publisher ad servers, from competing effectively with its own product, DoubleClick for Publishers, according to the CMA.
The CMA will consider any response from Google before making its final decision.
The regulatory body can impose a fine of up to 10% of the company’s global turnover, the amount of which depends on the severity of the infringement. It can also issue legally binding instructions to put an end to the infringement.
In a statement, Google said the CMA’s case was “flawed.”
“Our ad tech tools help websites and apps fund their content and enable businesses of all sizes to effectively reach new customers,” said Dan Taylor, Google’s vice president of global ads. “The heart of this case is based on misconceptions about the ad tech industry. We disagree with the CMA’s view and will respond accordingly.”
The US Department of Justice and the European Commission are also investigating Google’s activities in the ad tech sector. In June 2023, EU regulators said Google may have to sell part of its ad tech business to address their concerns, while on Monday the Justice Department will accuse Google in court of monopolizing the ad tech market.
Last month, a federal judge ruled that Google illegally monopolized control of the Internet search market, in a decision that could lead to a partial breakup of the business.