Competition authority criticizes Google’s ad tech practices

The Competition and Markets Authority (CMA) said its preliminary findings showed that Google was engaging in anti-competitive practices in its ad tech stack, a set of services that facilitate the sale of online advertising space between sellers and buyers.

The CMA had previously stated that Google has a strong position in this area on several levels, offering a wide range of services, including platforms where advertisers can buy online advertising space, as well as technologies that automate the sale of advertising space and manage ad inventories for publishers.

The regulator’s preliminary investigation has now revealed that the vast majority of publishers and advertisers use Google’s ad tech services when placing digital ads on websites.

The CMA expressed concern that Google was actively exploiting its dominant position in the industry to give priority to its own services.

Juliette Enser, acting executive director of enforcement at the CMA, said: “We have preliminary found that Google is using its market power to hinder competition when it comes to the ads that people see on websites.

“Many businesses can offer their digital content for free or at a lower price by generating revenue from online advertising. Ads on these sites and apps reach millions of people across the UK and support the buying and selling of goods and services.

“That is why it is so important that publishers and advertisers who enable this free content benefit from effective competition and receive fair conditions when buying or selling digital advertising space.”

Dan Taylor, vice president of global advertising 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 advertising partners in this highly competitive sector.

“The core of this case is based on faulty interpretations of the ad tech sector. We disagree with the CMA’s view and will respond accordingly.”

The CMA said it had sent a statement of objections to Google on the matter and would now carefully consider the tech giant’s submissions before making a final decision.