Google is under scrutiny by U.K. regulators for allegedly leveraging its dominant position in digital advertising to stifle competition in Britain. The Competition and Markets Authority (CMA) in the U.K. has accused Google of favoring its own services at the expense of online publishers and advertisers in the country's 1.8 billion pound digital ad market.
The CMA's investigation revealed that Google, a key player in the digital ad ecosystem, is using its market power to impede competition in the display ad sector. The watchdog's interim executive director of enforcement, Juliette Enser, highlighted concerns that Google's practices are hindering fair competition in the online advertising space.
The allegations against Google come after a two-year investigation by the CMA. The tech giant's digital ad business is also facing scrutiny from the European Union and the U.S. Justice Department, with ongoing antitrust investigations in both regions.
The CMA's statement of objections accuses Google of engaging in anti-competitive behavior since 2015 to bolster its AdX ad exchange and shield it from competitors. AdX, where Google charges significant fees, is alleged to have been given preferential treatment over rival exchanges, with claims that Google manipulates advertiser bids to its advantage.
Google has refuted the CMA's allegations, asserting its commitment to creating value for its partners in the competitive ad tech sector. The company maintains that the core of the case revolves around misconceptions about the ad tech industry and has pledged to respond to the accusations accordingly.
The CMA now awaits Google's response to the charges and is considering measures to address the alleged anti-competitive practices. The watchdog has the authority to impose fines of up to 10% of a company's global revenue or issue binding orders to rectify violations of competition law.
