It faces more scrutiny over its ad tech practices after the UK’s competition watchdog abuse of the company’s dominant market position. The Competition and Markets Authority said in a statement that Google was harming competition in the country by “using its dominance in online display advertising to favor its ad technology services”.
Watchman Since 2015, Google has used its dominant position in the sector as the operator of the Google Ads and DV260 ad buying tools and the publisher ad server DoubleClick For Publishers to power the AdX ad exchange. CMA said that AdX is at the heart of the company’s ad technology stack, and it is the platform that charges the highest fees to advertisers — about 20 percent of each bid for ad space processed there.
The CMA provisionally found that “the vast majority of publishers and advertisers use Google’s ad technology services to bid and sell advertising space on websites”. By prioritizing its own services, “Google disadvantages competitors and prevents them from competing on a level playing field to provide publishers and advertisers with a better, more competitive service that supports growth in their businesses,” he said.
The statement of objections gives Google a chance to provide feedback, and the CMA will consider those submissions before making any final decisions. A three-person case adjudication panel (none of whom participated in the preliminary investigation or filed a notice of objection). If the CMA ultimately finds that Google has violated competition rules, it could fine the company up to 10 percent of its global annual revenue and order legally binding changes to its ad tech business.
Google disagrees with the decision and “will respond accordingly,” said Google Ads vice president Dan Taylor. “Our ad tech tools help websites and apps monetize their content and enable businesses of all sizes to effectively reach new customers,” said Taylor in his statement. “Google remains committed to creating value for our publisher and advertiser partners in this highly competitive sector. This case is based on misrepresentations by the ad tech industry.”
Elsewhere, regulators have targeted Google’s position in ad tech. The European Commission accused the company of “abuse” in the online advertising space last June. The EC said that a potential order to enforce legal remedies against Google may not be sufficient to address these practices. This
Meanwhile, the Justice Department and Google are set to face off in a trial that begins Monday. The agency called on Google to break up its ad tech business, citing an alleged illegal monopoly it held in the market. Google failed . Last month, a federal judge ruled against Google after a trial stemming from a separate DOJ lawsuit.
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