The UK watchdog, Competition and Markets Authority (CMA), has found that Google is using anti-competitive practices to dominate the market for online advertising technology. This potentially unlawful behavior is believed to be harming thousands of UK publishers and advertisers, according to a provisional investigation.
The CMA accuses Google of preventing rivals from competing on a level playing field with its own technology, which is used by the vast majority of businesses when placing digital ads on websites. The watchdog’s findings suggest that Google’s actions could be hindering competition and impacting the revenue streams of businesses that rely on digital advertising.
Google has responded to the allegations, stating that the watchdog’s findings are “flawed” and that it will provide a response. The tech giant argues that its advertising technology helps websites and apps fund their content and effectively reach new customers, ultimately benefiting the digital ecosystem.
The CMA will now consider representations from Google before deciding on any potential actions. If Google is found to have violated competition law, the watchdog could impose a financial penalty of up to 10% of its annual worldwide turnover and issue legally binding directions to the firm.
This investigation is not the only scrutiny Google faces regarding its ad tech practices. The US Department of Justice and the European Commission are also conducting probes into Google’s activities in the ad tech sector. In 2023, EU competition regulators suggested that Google may need to sell part of its ad tech business to address concerns, a move that Google has deemed “disproportionate.”
The outcome of the CMA’s investigation and any subsequent actions taken against Google could have significant implications for the online advertising industry and the businesses that rely on digital advertising to reach their audiences. Stay tuned for updates as this story develops.
