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The United Kingdom’s free market regulator released its initial findings from an investigation into Google, saying the U.S. search engine has “abused its dominant positions” to “restrict competition in the U.K.”
In a news release published Sept. 6, the Competition and Markets Authority (CMA) said it believes that “Google is using anti-competitive practices in open-display ad tech,” which could be harming UK publishers and advertisers. The findings are provisional and part of a “statement of objections” sent to Google, not yet the basis for any legal action against the global tech giant.
The Competition and Markets Authority is the principal competition regulation in the United Kingdom, meant to prevent and reduce anticompetitive activity, break up monopolies, and oversee large mergers and acquisitions for their competitive effect.
In its statement of objections, the CMA suggests that “when placing digital ads on websites, the vast majority of publishers and advertisers use Google’s ad tech services in order to bid for and sell advertising space.
“The CMA is concerned that Google is actively using its dominance in this sector to preference its own services,” the regulators wrote. “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’s statement cited a 2019 study in which advertisers were found to have spent around £1.8 billion on open-display ads, marketing goods, and services via apps and websites to U.K. consumers.
CMA solicits Google’s reply before coming to a final decision
“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.
Eisner said that U.K. businesses that monetize their digital content with advertising are able to serve it to consumers for free, or at lower costs. Advertising also is a conduit to selling goods and services, she noted.
“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,” she said.
While the CMA considers its next steps to ensure Google isn’t engaged in anticompetitive practices, it says it will “carefully consider” the representations Google makes about this matter before reaching any decision.
The CMA’s statement notes that the U.S. Department of Justice and the European Commission also have ongoing investigations into Google’s actions in advertising technology.
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