In the United Kingdom, Google faced criticism from regulators on Friday for allegedly exploiting its dominant position in digital advertising to stifle competition. The U.K. Competition and Markets Authority accused Google of favoring its own services over others, to the detriment of online publishers and advertisers in the country’s 1.8 billion pound digital ad market. This scrutiny adds to the growing pressure on the tech giant in both the U.S. and Europe regarding its “ad tech” business practices.
Google plays a significant role in the digital advertising ecosystem, offering servers for publishers to manage ad space, tools for advertisers to buy display ads, and an exchange for buying and selling ads in real-time auctions. The interim executive director of enforcement at the watchdog, Juliette Enser, stated that Google’s market power is being used to impede competition in the ads displayed on websites.
The allegations against Google come after a two-year investigation by the watchdog. The company’s digital ad business is also under investigation by the European Union for antitrust concerns and faces a lawsuit by the U.S. Justice Department scheduled for trial soon.
In response to the allegations, Google defended its practices, claiming its commitment to adding value for partners in the competitive sector. The company disagreed with the U.K. watchdog’s view of the situation and vowed to respond accordingly.
The regulator accused Google of leveraging its dominance since 2015 to reinforce the position of its AdX ad exchange and shield it from competitors. Google’s AdX charges the highest fees, taking around 20% from bids in the ad tech system, according to the Competition and Markets Authority.
Among the regulator’s accusations is the claim that Google manipulates advertiser bids to gain an advantage in AdX auctions over rival exchanges. AdX also reportedly gets priority in auctions managed by Google’s publisher ad server, potentially excluding competitors from participating in bids.
Google now has the opportunity to address the charges, with the watchdog considering measures to put an end to the anti-competitive practices. The Competition and Markets Authority has the authority to impose fines of up to 10% of a company’s global annual revenue or issue an enforceable order to halt violations of competition laws.
