CMA Probes Google's Ad Tech Dominance

Britain's Competition and Markets Authority has provisionally found Google guilty of abusing its dominant position in digital advertising. The CMA claims Google is restricting competition by favoring its own ad exchange, potentially harming thousands of British publishers and advertisers. Google disputes these findings.

Britain's antitrust regulator, the Competition and Markets Authority (CMA), announced on Friday it has provisionally found Alphabet's Google guilty of abusing its dominant position in digital advertising to stifle competition.

The CMA accused Google of employing anti-competitive practices by prioritizing its own ad exchange in open display ad tech, potentially harming thousands of British publishers and advertisers.

Juliette Enser, the CMA's interim executive director of enforcement, stated, "We've provisionally found that Google is using its market power to hinder competition when it comes to the ads people see on websites." She highlighted the importance of online advertising in keeping digital content free or cheaper for businesses and users.

In response, Google's VP of Global Ads, Dan Taylor, disagreed with the CMA's viewpoint. "Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers," he said.

The U.S. Department of Justice and the European Commission are also scrutinizing Google's activities in the ad tech sector. In June 2023, EU regulators suggested Google may need to sell part of its ad tech business to address concerns, a measure Google described as "disproportionate."

The CMA revealed that since 2015, Google has been leveraging its dominance in both the buying and selling sides of the advertising supply chain to favor its own ad exchange, AdX.

The regulator has the authority to impose fines of up to 10% of a company's global turnover based on the seriousness of the infringement. Additionally, it can issue legally binding directions to halt the infringement. The CMA will consider Google's representations before deciding on any action.

(With inputs from agencies.)