Britain’s Competition and Markets Authority announced on Friday that it has provisionally found Alphabet’s Google guilty of abusing its dominant position in digital advertising, thereby restricting competition.
The CMA believes Google has engaged in anti-competitive practices by favoring its own ad exchange, AdX, in the open display ad tech market, potentially harming thousands of 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 when it comes to the ads people see on websites. Many businesses rely on online advertising to generate revenue, which helps keep digital content free or cheaper.”
In response, Google disagreed with the CMA’s findings. Dan Taylor, Google’s VP of Global Ads, emphasized that the company’s ad tech tools support websites and apps, helping businesses reach new customers. He argued that the CMA’s case is based on “flawed interpretations” of the ad tech sector.
This investigation adds to the global scrutiny Google faces, as the U.S. Department of Justice and the European Commission are also probing its ad tech practices. In June 2023, EU regulators suggested that Google might need to sell part of its ad tech business, a move Google deemed “disproportionate.”
The CMA’s provisional findings indicate that Google has been abusing its dominance in the ad supply chain since at least 2015. The regulator could impose a fine of up to 10% of Google’s global turnover and issue legally binding orders to halt the practices. The CMA will consider Google’s representations before making a final decision.
