The case comes as Google faces trial in a second antitrust case next week where the U.S.Department of Justice will challenge how the search giant’s advertising business has acted as a monopoly that’s led to higher ad prices for customers. For Google, the focus turns to its ad tools, which are part of the company’s $200 billion digital ad business.
What UK regulator claims
The CMA alleges that Google has been using its market power to favor its own services, hindering competition for online publishers and advertisers. The watchdog’s investigation could potentially lead to a hefty fine or orders to change Google’s behavior.
Google’s digital ad business, which includes ad servers, tools for advertisers, and an ad exchange, is also under scrutiny by the European Union and the US Justice Department.
The CMA claimed that Google has been exploiting its dominance since 2015 to strengthen the market position of its own AdX ad exchange, which charges higher fees than rival exchanges. The regulator also accused Google of manipulating advertiser bids and giving AdX preferential treatment in auctions.
Google disputed the allegations, stating that it remains committed to creating value for its partners. However, the CMA has the power to impose a fine of up to 10% of the company’s annual worldwide revenue or issue a legally binding order to stop anti-competitive practices.
