The UK’s Competition and Markets Authority (CMA) has provisionally concluded that US tech giant Google engages in “anti-competitive practices” within the online advertising sector. This conclusion follows a two-year investigation into the ad tech industry, focusing on how online ads are selected and priced.
Similar investigations are being conducted by the US Department of Justice and the European Commission.
In a statement released on Friday, the CMA expressed concern that Google’s dominance in the ad tech sector allows it to favor its own services, potentially harming thousands of UK publishers and advertisers. The regulator emphasized that it will carefully review Google’s response before making a final decision.
Dan Taylor, Google’s VP of Global Ads, countered the CMA’s findings, calling them based on “flawed interpretations” of the ad tech sector. He defended Google’s advertising tools, stating they support websites and apps in funding their content and help businesses reach new customers effectively. Taylor reiterated Google’s commitment to creating value for its partners in a highly competitive market.
The CMA’s investigation revealed that most UK publishers and advertisers rely heavily on Google’s ad tech services to bid for and sell advertising space. The watchdog is concerned that Google’s practices prevent competitors from offering better, more competitive services, ultimately harming business growth.
Recently, the UK’s Competition Appeal Tribunal allowed a £13.6 billion ($17.9 billion) lawsuit against Google, alleging anti-competitive behavior in digital advertising, to proceed to trial.
Juliette Enser, interim executive director of enforcement at the CMA, highlighted the importance of effective competition in digital advertising, which enables businesses to keep their content affordable or free. She stressed that publishers and advertisers need a fair market to benefit from digital advertising.
Google-parent Alphabet recently reported that its revenue from online ad searches reached $48.5 billion in the second quarter of this year.