Google has been accused of using “anti-competitive practices” which harm thousands of publishers and advertisers in the UK.
The Competition and Markets Authority (CMA) said it has provisionally found that the US giant could be negatively impacting rivals over open-display advert technology.
According to its findings, the watchdog said that when placing digital adverts on websites, the vast majority of publishers and advertisers use Google’s ad tech services in order to bid for and sell advertising space.
The CMA said it is concerned that Google is “actively using its dominance in this sector to preference its own services”.
It also said that Google “disadvantages competitors and prevents them competing on a level playing field to provide publishers and advertisers with a better, more competitive service that supports growth in their business”.
Google using dominance to ‘hinder competition’
Juliette Enser, interim executive director of enforcement at the CMA, said: “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 are able to keep their digital content free or cheaper by using online advertising to generate revenue.
“Adverts on these websites and apps reach millions of people across the UK – assisting the buying and selling of goods and services.
“That’s why it’s so important that publishers and advertisers – who enable this free content – can benefit from effective competition and get a fair deal when buying or selling digital advertising space.”
The CMA‘s findings come after the US Department of Justice and European Commission also opened separate investigations into Google’s activities in ad tech.
As a result of its preliminary findings, the CMA is considering what may be required to ensure that Google ceases the anti-competitive practices and that it does not engage in similar practices in the future.
‘We disagree with the CMA’s view’
Dan Taylor, VP of global ads at Google, said: “Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers.
“Google remains committed to creating value for our publisher and advertiser partners in this highly competitive sector.
“The core of this case rests on flawed interpretations of the ad tech sector. We disagree with the CMAs view and we will respond accordingly.”