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The UK Competition and Markets Authority (CMA) has provisionally determined that Google abused its dominance of ad tech to stifle competition in the country.
Google allegedly ‘self-preferenced’ its AdX ad exchange through its control of both buying tools and publisher ad server.
The tech giant is accused of giving AdX “exclusive or preferential” access to marketers that use the Google Ads platform. It also purportedly gave ad bids a higher value in AdX auctions (which decide which ads you see) versus those of rivals. On top of this, AdX is said to get the first bid in auctions run by Google’s DoubleClick for Publishers (DFP), effectively preventing competitors from bidding in the first place.
The strategy might be hurting “thousands” of British publishers and advertisers, the CMA said. It supposedly limits competing exchanges and publisher ad servers.
Google has taken this approach since “at least” 2015, and the practice is still “ongoing,” according to the UK watchdog. The CMA is examining what actions it might take to stop the alleged anti-competitive behavior, but will also listen to Google before making a decision.
If the Authority moves forward, it could fine Google up to 10% of its yearly global turnover in addition to ordering business changes.
In a statement, Google’s Global Ads VP Dan Taylor disputed the provisional conclusion. He argued that the CMA was basing its assessment on “flawed interpretations” of ad tech, and that the market was “highly competitive.” Google will contest the findings in its response, Taylor added.
The preliminary outcome in the UK adds to Google’s regulatory trouble in recent months. Last month, the firm lost a US antitrust case over its commanding position in search. The US Justice Department also sued Google in January 2023 over ad tech, although that case is still in progress.
There’s no certainty that the CMA determination or the antitrust lawsuits will survive challenges and appeals. However, it’s clear that Google is at a turning point where it might have to revamp its business model.
