The UK’s Competition and Markets Authority (CMA) has raised concerns about Google’s dominance in the online display advertising sector, alleging that the tech giant is using its power to stifle competition. In a provisional statement released Friday, the regulator accused Google of favoring its own ad tech services, which may be harming British publishers and advertisers.
According to the CMA, the “vast majority” of UK advertisers and publishers rely on Google’s ad technology to buy and sell digital ad space, a market worth £1.8 billion as of a 2019 study. The regulator argues that Google’s practices, such as “self-preferencing” its services, are creating an uneven playing field, disadvantaging competitors in the ad tech industry.
Juliette Enser, interim executive director of enforcement at the CMA, emphasized the importance of fair competition in digital advertising.
“Many businesses are able to keep their digital content free or cheaper by using online advertising to generate revenue. That’s why it’s so important that publishers and advertisers can benefit from effective competition and get a fair deal,” said Enser.
Google, however, disagrees with the CMA’s findings. Dan Taylor, Google’s VP of Global Ads, said the company’s tools help websites and apps generate revenue while enabling businesses to reach customers effectively.
“The core of this case rests on flawed interpretations of the ad tech sector,” he added.
The CMA’s inquiry centers on Google’s ad-buying tools—Google Ads and DV360—and its publisher ad server, DoubleClick for Publishers, which allegedly favor Google’s own ad exchange, AdX. The CMA noted that AdX is central to Google’s advertising operations, with the company charging a 20% fee on bids processed through its platform.
This is not the first time Google has faced scrutiny over its ad tech practices. European Union regulators and the US Department of Justice are also investigating the company for similar concerns. In June 2023, EU regulators suggested Google may need to sell part of its ad tech business to address competition issues, a proposal Google deemed “disproportionate.”
The CMA can impose penalties of up to 10% of a company’s global turnover if it finds Google in violation of competition laws. The regulator will now review Google’s response before deciding on further action.
