British Competition Regulator Says Google's Ad Practices Harmed Competition

An anonymous reader shared this report from CNBC:Britain's competition watchdog on Friday issued a statement of objections over Google's ad tech practices, which the regulator provisionally found are impacting competition in the U.K. In a statement, the Competition and Markets Authority alleged that the U.S. internet search titan "has harmed competition by using its dominance in online display advertising to favour its own ad tech services." The "vast majority" of the U.K.'s thousands of publishers and advertisers use Google's technology in order to bid for and sell space to display ads in a market where players were spending 1.8 billion annually as of a 2019 study, according to the CMA. The regulator added that it is also "concerned that Google is actively using its dominance in this sector to preference its own services." So-called "self-preferencing" of services by technology giants is a key concern for regulators scrutinizing these companies. The CMA further noted that Google disadvantages ad technology competitors, preventing them from competing on a "level playing field...." In the CMA's decision Friday, the watchdog said that, since 2015, Google has abused its dominant position as the operator of both ad buying tools "Google Ads" and "DV360," and of a publisher ad server known as "DoubleClick For Publishers," in order to strengthen the market position of its advertising exchange, AdX... AdX, on which Google charges its highest fees to advertisers, is the "centre of the ad tech stack" for the company, the CMA said, with Google taking roughly 20% of the amount for each bid that's processed on its platform.

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