The UK’s competition watchdog today took aim at Google’s advertising practices, accusing the California-based tech giant of abusing its market power.
The Competition and Markets Authority (CMA) said Google has used its dominant positions through the operation of both its publisher ad server and buying tools to restrict competition in the UK.
The CMA said it was “concerned” that Google is “actively using its dominance in this sector to preference its own services.”
“Google disadvantages competitors and prevents them competing on a level playing field to provide publishers and advertisers with a better, more competitive service that supports growth in their business,” the regulator said.
The CMA said it was considering what may be required to ensure that Google ceases the anti-competitive practices, and to prevent it from adopting similar practices in the future.
It follows similar investigations by the US Department of Justice and European Commission into Google’s activities in ad tech.
Juliette Enser, Interim Executive Director of Enforcement, said: “We’ve provisionally found that Google is using its market power to hinder competition when it comes to the ads people see on websites.
“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.
“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 operates two ad buying tools for advertisers, Google Ads and DV36 as well as a publisher ad server, DFP and an ad exchange, known as AdX.
According to the CMA, Google has operated both its buying tools and publisher ad server in order to strengthen AdX’s market position and to protect AdX from competition from other exchanges. The tech giant has also been accused of preventing rival publisher ad servers from being able to compete effectively with DFP.
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