Google Ad Tech business is abusing power claims UK competition regulator

Google is abusing its power in the ad tech business, alleged UK. The country’s Competition and Markets Authority (CMA) has asked for Google’s response to the provisional findings before the UK competition regulator reaches a final decision.

The UK accuses Google of abusing its power in the ad tech business.

Incidentally, the UK CMA has been investigating Google’s role in the ad tech stack since May 2022. The regulator has essentially accused Google of abusing its dominance in the search and ad business to gain undue and unfair advantage. Moreover, the UK regulator also suspects Google is intentionally strong-arming its competition and publishers.

According to the CMA, “a vast majority of the U.K.’s thousands of publishers and advertisers use Google’s technology to bid for and sell space to display ads in a market where players were spending £1.8 billion annually as of a 2019 study.”

🚨 On Sep 6, 2024, Google’s ad tech practices are under investigation by UK regulators over potential market dominance abuse, adding to rising regulatory concerns. Meanwhile, YouTube faces scrutiny after actions against a media channel. 📉 #GOOGL #AdTech #Regulation #BigTech… pic.twitter.com/CB9yf5R5vg

— Sherlock AI (@AskSherlockAI) September 6, 2024

Specifically speaking, the UK CMA has reportedly sent Google a formal statement of objections. This statement is based on provisional findings that accuse the ad tech giant of, “self-preferencing its ad exchange at the expense of customers and rivals”.

The UK watchdog suspects Google’s practices, “has harmed competition by using its dominance in online display advertising to favor its own ad tech services.” Moreover, “Google disadvantages ad technology competitors, preventing them from competing on a level playing field,” the CMA has alleged.

What are the allegations against Google?

Google has been facing the heat for its ad tech business from multiple regulators across the globe. Competition Councils, Commissions, the judiciary, and other antitrust agencies have leveled allegations.

The UK’s CMA has reportedly alleged Google of providing Google AdX with exclusive or preferential access to advertisers that use Google Ads’ platform. It’s also alleging that Google was manipulating advertiser bids so that they have a higher value when submitted into AdX’s auction than when submitted into rival exchanges’ auctions. Lastly, it alleges that Google allowed AdX to bid first in auctions run by DFP for online advertising space. Effectively giving it a ‘right of first refusal’ – with rivals potentially not having any chance to submit bids.

The #UK‘s competition watchdog has accused #Google of being “anti-competitive” by using its ad tech services to stifle competition in the advertising market. #Forbes

For more details: 🔗https://t.co/UFn7JDTd0g pic.twitter.com/XvhsQggnKo

— Forbes Middle East (@Forbes_MENA_) September 6, 2024

Interestingly, the CMA has claimed there are multiple practices of the search giant that it has found objectionable. “The CMA is therefore considering what may be required to ensure that Google ceases the anti-competitive practices and that Google does not engage in similar practices in the future,” the agency added.

The UK competition regulator has hinted that Google may have to sell off certain ad tech units, presumably to ensure fair competition. However, for now, Google will have to respond to the allegations and present its arguments before the UK CMA.