The UK's Competition and Markets Authority (CMA) has administered a provisional rap over Google's knuckles for alleged abuse of its dominant position in the advertising technology marketplace.

The findings, which are provisional at this stage, are that publishers and advertisers are leaning more toward Google's own adtech services to bid for and sell advertising space rather than those of its rivals.

According to the CMA, it is concerned "that Google is actively using its dominance in this sector to preference its own services.

"Google disadvantages competitors and prevents them competing on a level playing field to provide publishers and advertisers with a better, more competitive service that supports growth in their business."

The CMA is not alone in looking into Google's adtech activities. The European Commission and the US Department of Justice have ongoing investigations.

In the US, Google offered to write the Department of Justice (DoJ) a check to make a damages claim over allegations it monopolizes advertising go away. The case has been ongoing since the start of 2023, when eight states sued Google for its ad antics.

The antitrust complaints accused Google of manipulating processes to force publishers and advertisers to use its tools, thus distorting competition.

Digital advertising is big business. The CMA found that in 2019, advertisers spent approximately £1.8 billion ($2.3 billion) marketing goods and services via apps and websites to UK consumers.

The CMA's concerns stem from Google's role as an intermediary in the adtech stack. A user opens a page on a website or fires up an app, and a near instantaneous set of auctions and transactions occurs to determine what ads are shown.

According to the CMA, Google has given its own services a competitive edge at the expense of its rivals. As well as ad-buying tools, such as Google Ads, it also operates an ad exchange called AdX and a publisher ad server called "DoubleClick for Publishers" (DPF).

It's not difficult to see where a conflict of interest could occur as one service might give preferential treatment to another, and so on.

Google, however, points out that providing services to both advertisers and publishers is not uncommon, although it is by far the biggest beast when it comes to online ad-slinging. The company has also been at pains to insist that its auctions are fair and that the highest bid wins, regardless of where it comes from.

In an email to The Register, Dan Taylor, VP of Global Ads 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 advertiser partners in this highly competitive sector. The core of this case rests on flawed interpretations of the adtech sector. We disagree with the CMA's view and we will respond accordingly."

Juliette Enser, interim Executive Director of Enforcement at the UK's competition watchdog, said: "We've provisionally found that Google is using its market power to hinder competition when it comes to the ads people see on websites.

"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.

"That's why it's so important that publishers and advertisers - who enable this free content - can benefit from effective competition and get a fair deal when buying or selling digital advertising space." ®

https://www.theregister.com//2024/09/06/uks_competition_watchdog_takes_issue/