UK CMA Provisional Ruling: Google’s Anti-Competitive Practices in Ad Technologies

The UK Competition and Markets Authority (CMA) has recently provided a provisional decision regarding Google’s digital display ads operations. In a press release, the CMA asserted that it believes Google engages in “anti-competitive practices,”which have adversely affected both publishers and advertising firms across the UK. The regulatory body commenced its investigation into Google’s digital advertising practices back in May 2022, making this provisional finding a notable development more than two years later.

The press release states:

The CMA is concerned that Google is leveraging its dominant position in the market to favor its own services. This results in disadvantaging competitors and undermines their ability to compete fairly, thereby preventing publishers and advertisers from obtaining a more competitive service that would foster growth in their businesses.

The CMA’s statements outline its concerns regarding Google’s tactics in the digital advertising landscape, particularly its use of its ad exchange, known as AdX. The regulator accuses Google of granting UK advertisers “exclusive or preferential access”while simultaneously “manipulating advertiser bids so that they hold a higher value”when entered into AdX auctions, compared to bids submitted to competitors’ ad auctions.

Additionally, today’s announcement highlights ongoing investigations by both the US Department of Justice and the European Commission into Google’s impact on the digital advertising industry.

The CMA has forwarded its objections to Google and is now awaiting the company’s response to its findings before it issues a final verdict.

In a statement to TechCrunch, Dan Taylor, Vice President of Global Ads at Google, remarked, “The crux of this case is built upon flawed interpretations of the advertising technology sector. We disagree with the CMA’s perspective, and we will respond appropriately.”

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