Google uses anti-competitive advertising practices, UK authority finds
Google’s anti-competitive advertising practices are harming UK publishers and advertisers, the UK’s Competition and Markets Authority (CMA) found on Friday (6 September), amid similar investigations in the EU and US over the company’s monopolistic behaviour in search and ad markets.
The CMA believes Google is favouring its own products, making it difficult for competitors to provide better or more affordable services.
The authority also accused Google of using its power to give its ad platform unfair advantages, such as allowing its own services to bid first in auctions for ad space.
The investigation also carries international significance: in the EU, where Google has previously faced regulatory challenges, including antitrust fines for similar behaviour; and in the US, where in August a judge ruled that Google holds an illegal monopoly in search engines and ads, partly due to its deal with Apple to be the default search engine on Apple devices.
“The core of [the UK] case rests on flawed interpretations of the ad tech sector. We disagree with the CMA’s view and we will respond accordingly,” Dan Taylor, Vice President of Global Ads at Google, told Euractiv.
Taylor said that Google’s advertising technology tools assist websites and apps in generating revenue for their content while enabling businesses of all sizes to reach new customers. He also highlighted the company’s commitment to providing value to its publisher and advertiser partners.
Google’s online ads are vital for keeping digital content affordable, which is why fair competition is essential for publishers and advertisers to get better deals, said Juliette Enser, Interim Executive Director of Enforcement at the CMA.
EU probe: Google may have abused advertising market dominance
The European Commission’s competition authority found that Google may have abused its dominant position in the online advertising market, concluding the preliminary phase of an antitrust investigation started in 2021.
Google’s advertising
An ‘ad tech stack’ is a system for buying and selling ad space on websites or apps, with quick auctions deciding which ads appear. Google’s AdX marketplace manages these auctions and charges the highest fees compared to other ad exchanges, sparking concerns about unfair competition.
In 2015, the CMA found Google has used its power to give AdX an unfair advantage, allowing it to bid first and gain better access to advertisers, making it harder for competitors to compete.
In a 2019 study on digital advertising, the CMA also discovered that advertisers were spending about £1.8 billion each year on open-display ads, promoting products and services to UK consumers through apps and websites.
The investigation will continue, and Google will have a chance to respond before a final decision is made, the CMA stated. The authority could impose fines or other penalties if it finds Google has broken competition laws.
Google has previously faced significant regulatory challenges in the EU over its competition practices.
In March, the EU launched a Digitial Markets Act (DMA) investigation into Alphabet, the parent company of Google, which focused on its app store policies, search result biases, and compliance with the DMA’s choice screen requirements, which prompt users to select default apps.
Google has also been found to hinder competition in online advertising in June, boosting its search engine dominance on Android devices, and promoting its own shopping service on search. The latter two investigations ended with the largest antitrust fines in EU history in 2017 and 2018.
US aligns with EU on Google antitrust case, hinting at enforcement measures
Following the recent US court ruling on Google’s market dominance, Washington may be aligning more closely with the Brussels approach to tech competition regulation, hinting at possible enforcement measures.
Read more with Euractiv
