Britain’s Competition and Markets Authority (CMA) has provisionally found that Alphabet’s Google has abused its dominant position in digital advertising, potentially stifling competition. The CMA alleges that Google’s preferential treatment of its own ad exchange in the open display ad tech market is harming numerous British publishers and advertisers.
Juliette Enser, the CMA’s interim executive director of enforcement, stated, “We’ve provisionally found that Google is using its market power to hinder competition regarding the ads people see on websites. Many businesses rely on online advertising to keep their digital content free or lower in cost, reaching millions of people across the UK.”
Google has responded by disagreeing with the CMA’s findings and defending its practices. Dan Taylor, Google’s VP of Global Ads, argued, “Our advertising technology tools support websites and apps in funding their content and help businesses of all sizes reach new customers. Google is committed to delivering value for our partners in this competitive sector. We believe the core of this case is based on flawed interpretations of the ad tech industry.”
The CMA’s investigation revealed that Google may have been using its dominance since at least 2015 to favor its own ad exchange, AdX, in auction processes. This finding follows similar scrutiny from U.S. Department of Justice and European Commission investigations. In June 2023, EU regulators suggested that Google might need to divest part of its ad tech business, though Google has called such a measure “disproportionate.”
The CMA can impose fines of up to 10% of a company’s global turnover, depending on the severity of the infringement, and issue legally binding directives to address the issue. Google’s responses will now be reviewed by the CMA before any final decisions are made.
