Google abusing power over website ads, UK regulator says
Adds detail on potential penalties in paragraph 11
By Paul Sandle
LONDON, Sept 6 (Reuters) -Britain's antitrust regulator said on Friday it hadprovisionally found Alphabet's GOOGL.OGoogle had abused its dominant position in digital advertisingto restrict competition.
The Competition and Markets Authority (CMA) said it believed Google was using anti-competitive practices in open display ad tech through the preference of its own ad exchange, which could be harming thousands of British publishers and advertisers.
"We've provisionally found that Google is using its market power to hinder competition when it comes to the ads people see on websites," said Juliette Enser, the CMA's interim executive director of enforcement.
"Many businesses are able to keep their digital content free or cheaper by using online advertising to generate revenue. Adverts on these websites and apps reach millions of people across the UK – assisting the buying and selling of goods and services."
Google said it disagreed with the CMA's view and would respond accordingly.
"Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers," said Google's VP of Global Ads Dan Taylor.
"Google remains committed to creating value for our publisher and advertiser partners in this highly competitive sector. The core of this case rests on flawed interpretations of the ad tech sector."
The U.S Department of Justice and the European Commission are also investigating Google's activities in ad tech.
In June 2023, EU regulators said Google may have to sell part of its adtech business to address its concerns. Google said in December that such a step would be "disproportionate".
The CMA said it had provisionally found that since at least 2015 Google had been abusing its dominance on both the buying and selling sides of the advertising supply chain to favour its own ad exchange AdX in matching auctions.
The regulator can impose a fine of up to 10% of a company’s global turnover, with the amount depending on the seriousness of the infringement. It can also issue legally binding directions to bring the infringement to an end.
Representations from Google will now be considered, the CMA said, before it reaches a decision on what action to take.
Reporting by Paul Sandle in London and Radhika Anilkumar in Bengaluru; Editing by Savio D'Souza, Kim Coghill and Louise Heavens
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.