Google's anti-competition policies are once again under scrutiny.
This time a UK watchdog has provisionally determined that Google employs anti-competitive tactics to dominate the online advertising technology market.
The CMA said that Google is limiting competition by preventing rivals from competing fairly with its own advertising technology.
Google’s anti-competition policies are once again under scrutiny. This time a UK watchdog has provisionally determined that Google employs anti-competitive tactics to dominate the online advertising technology market. According to the Competition and Markets Authority (CMA), these potentially unlawful actions could harm thousands of UK publishers and advertisers. This isn’t the first time when the tech giant has been accused of such practices.
As per a report by BBC, the CMA said that Google is limiting competition by preventing rivals from competing fairly with its own advertising technology, which handles billions of pounds in digital ad spending by UK businesses.
Google responded to the findings, calling them “flawed” and indicating it plans to provide a formal response. The CMA noted that most businesses rely on Google’s services to place digital ads on websites, but Google argues that its products benefit UK businesses by helping them succeed, which is why advertisers choose to use them.
Also read: Is Google killing publishers? Major concerns raised around how AI Overviews work
The CMA will now review Google’s representations before deciding on further action. If Google is found to have violated competition law, the company could face a fine of up to 10% of its global turnover and may receive legally binding orders to change its practices.
Juliette Enser, the CMA’s interim executive director of enforcement, said the investigation provisionally found that Google’s market power impedes competition in the digital advertising space. She stressed that many businesses rely on ad revenue to provide free digital content to millions across the UK, highlighting the need for fair competition in the sector.
In contrast, Dan Taylor, Google’s vice president of global ads, argued that the company’s advertising technology supports websites and apps in generating revenue and reaching new customers. He stated that the case hinges on “flawed interpretations” of the ad tech industry and that Google will challenge the CMA’s findings.
Also read: Google’s antitrust cases in India: A brief history
Google’s ad tech practices are also under scrutiny by the US Department of Justice and the European Commission. Competition expert Dr. Cristina Caffarra noted that while the CMA’s actions add pressure on Google, other authorities, such as the US and EU, are further along in addressing concerns about Google’s dominance in ad tech.
In 2023, EU regulators suggested that Google might need to sell part of its ad tech business to resolve their concerns, but Google has called this move “disproportionate.” Meanwhile, Google is appealing a UK court decision allowing a £13.6 billion collective lawsuit to proceed, which alleges the company engaged in anti-competitive practices that harmed UK online publishers. Google has pledged to defend itself “vigorously.”
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