Google Accused of ‘Anti-Competitive Practices’ in UK Online Ad Tech

AFP/APP

London: The UK’s Competition and Markets Authority (CMA) has provisionally concluded that US tech giant Google engages in “anti-competitive practices” related to online advertising.

The finding comes as part of a two-year investigation into the ad tech sector, which determines the ads individuals see online and how much they cost.

Similar probes are ongoing in the US and Europe, with the US Department of Justice and the European Commission also examining Google’s practices.

In a statement released Friday, the CMA expressed concerns that Google is using its dominance in the open-display ad tech market to harm thousands of publishers and advertisers in the UK.

The investigation, launched in May 2022, found that most publishers and advertisers rely on Google’s ad tech services to place digital ads. The regulator suspects Google is leveraging its dominance to unfairly preference its own services, thereby limiting competition.

Before reaching a final decision, the CMA will carefully consider Google’s representations.

Google Responds

Dan Taylor, Google’s VP of Global Ads, refuted the CMA’s findings, stating the case rests on “flawed interpretations” of the ad tech sector.

He argued that Google’s ad tech tools support websites, apps, and businesses of all sizes by helping them effectively reach new customers. Taylor emphasized Google’s commitment to providing value to publishers and advertisers in what he described as a “highly competitive” sector.

However, the CMA noted that Google’s practices potentially prevent competitors from offering more competitive services, impacting the growth of businesses reliant on digital advertising.

Legal Proceedings

The investigation follows a multibillion-pound lawsuit against Google in the UK. The Competition Appeal Tribunal recently ruled that a £13.6 billion ($17.9 billion) claim, brought by Ad Tech Collective Action LLP, could proceed to trial. The claim accuses Google of abusing its dominant position, causing substantial losses to UK online publishers.

Juliette Enser, interim executive director of enforcement at the CMA, underscored the importance of ensuring effective competition, as many businesses rely on online advertising to generate revenue and keep digital content free or affordable.

Google’s parent company, Alphabet, recently reported a rise in ad search revenue to $48.5 billion for the second quarter of this year.