UK Regulator Targets Google for Anti-Competitive Digital Ads Practices
The UK Competition and Markets Authority (CMA) has provisionally determined that Google is abusing its dominant position in the advertising technology space. The CMA alleges that Google manipulates bids to gain a higher value when submitted into its own advertising exchange, AdX, disadvantaging advertisers and publishers who are not receiving a fair deal. This practice is alleged to strengthen Google's AdX ad exchange and protect it from rivals, thereby undermining competition in the £1.8 billion ($2.4 billion) digital ad market in Britain.
These charges come two years after the CMA opened its investigation into Google's ad bidding services. The regulator has the authority to impose a fine of up to 10% of Google's annual worldwide turnover under the Chapter II provision of the Competition Act 1998, which prohibits the abuse of a dominant position that may affect trade within the UK. Google disputes the allegations, stating it remains committed to creating value for its publisher and advertiser partners in a highly competitive sector.
