The UK's competition watchdog, the Competition and Markets Authority (CMA), has provisionally determined that Google engages in "anti-competitive practices" concerning online advertising, following a two-year investigation.
The investigation scrutinized Google's role in ad tech— the system responsible for determining which online ads are displayed and their costs. Similar inquiries are also underway by the US Department of Justice and the European Commission.
According to the CMA, the investigation, which began in May 2022, has revealed that Google’s conduct in the open-display ad tech market may be harming UK publishers and advertisers. The CMA stated it will carefully review Google's input before issuing a final decision.
Dan Taylor, Google's VP of Global Ads, has contested the CMA's findings, arguing that the agency's case is based on "flawed interpretations" of the ad tech industry. Taylor emphasized that Google’s advertising tools support content funding and help businesses connect with new customers. He reaffirmed Google’s commitment to delivering value to its partners in a competitive market.
The CMA's provisional findings suggest that Google’s dominance in the digital ad sector leads to preferential treatment of its own services. The regulator expressed concerns that Google's practices disadvantage competitors, thereby restricting the quality and competitiveness of advertising services available to publishers and advertisers.
Moreover, the UK's Competition Appeal Tribunal has recently permitted a £13.6 billion ($17.9 billion) lawsuit against Google to move forward. The claim, brought by the Ad Tech Collective Action LLP, accuses Google of misusing its dominant position and causing substantial losses to UK online publishers.
Juliette Enser, the CMA’s interim executive director of enforcement, highlighted the importance of effective competition in maintaining the availability of free or affordable digital content. She emphasized that fair competition is crucial for publishers and advertisers to secure equitable deals in the digital ad space.
In a recent financial report, Alphabet, Google's parent company, disclosed that revenue from online ad searches skyrocketed to $48.5 billion in the second quarter of this year.
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