UK’s Competition and Markets Authority or CMA announced that it has provisionally found that tech major Google LLC, owned by Alphabet Inc., has abused its dominant positions through the operation of both its publisher ad server and buying tools to restrict competition in the country. The agency has objected to Google’s digital advertising or ad tech practices to help UK advertisers and publishers.
The US Department of Justice and the European Commission have also opened separate probes into Google’s activities in ad tech. These proceedings are currently ongoing.
In a statement of objections issued to Google, the CMA noted that its provisional findings relate to anti-competitive ‘self-preferencing’ by Google, harming competition. When placing digital ads on websites, the vast majority of publishers and advertisers use Google’s ad tech services in order to bid for and sell advertising space.
The agency, through an investigation, found that Google has been using anti-competitive practices in open-display ad tech, which it believes could be harming thousands of UK publishers and advertisers.
According to CMA, Google, since at least 2015, has abused its dominant positions through the operation of both its buying tools and publisher ad server.
It was found that 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 CMA is concerned that Google is actively using its dominance in this sector to preference its own services.
The CMA, in its 2019 market study into digital advertising, found that advertisers were spending around 1.8 billion pounds annually on open-display ads, marketing goods and services via apps and websites to UK consumers.
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 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’s anti-competitive conduct is ongoing, and so, the CMA is considering steps to ensure that Google ceases the anti-competitive practices, and that Google does not engage in similar practices in the future.
Before reaching its final decision, the CMA will now carefully consider representations from Google. The agency may impose a financial penalty, if found to have infringed the Chapter II prohibition of up to 10 percent of its annual worldwide group turnover.
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