Google may have violated U.K. competition law in digital ads, according to antitrust investigation

U.K. antitrust authorities have raised concerns that Alphabet’s Google might be stifling competition in the digital ad market by favouring its ad tech services. The Competition and Markets Authority (CMA) has initiated an investigation, stating that Google’s dominant position may be hindering competitors’ ability to offer alternatives to publishers and advertisers. This comes as similar antitrust probes are ongoing in both Europe and the U.S., where the tech giant is also accused of abusing its monopoly power in the digital advertising space.

The preliminary investigation by the CMA found that most advertisers and publishers use Google’s ad tech services for bidding and selling ad space. The regulatory body expressed concern that Google’s practices might be giving an unfair advantage to its services, thereby restricting competition in the market.

Juliette Enser, interim executive director of enforcement at the CMA, stated, “Our provisional findings suggest that Google is leveraging its market dominance to limit competition in the online advertising space, affecting the ads users encounter on websites.”

These allegations align with ongoing investigations by the European Commission and the U.S. Department of Justice. Both entities have accused Google of exploiting its dominance in the ad-tech sector to favour its services, thereby disadvantaging competing ad-tech providers.

In response to the U.K. regulator’s findings, Dan Taylor, Google’s Vice President of Global Ads, rejected the accusations. He argued that the company’s advertising technology tools are designed to help websites and apps fund their content while allowing businesses of all sizes to effectively reach new customers. Taylor emphasized Google’s commitment to providing value to both publishers and advertisers in what he described as a “highly competitive sector.”

Google has been a leading player in the digital advertising market, offering a range of ad tech services like Google Ads and DoubleClick for Publishers. These tools enable the sale and placement of ads across various websites, including news outlets. Google also operates an ad exchange, AdX, which facilitates bids between publishers and advertisers. The CMA alleges that Google has been leveraging its dominance across these tools and platforms since at least 2015, creating barriers for competitors in the digital ad space.

The CMA is currently evaluating possible measures to address Google’s alleged anti-competitive behaviour. According to Enser, publishers and advertisers must benefit from healthy competition, especially given the importance of online advertising in keeping digital content affordable or free.