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Google using anti-competitive tactics in the ad market, claims UK watchdog

Google using anti-competitive tactics in the ad market, claims UK watchdog

Google using anti-competitive tactics in the ad market, claims UK watchdog

Similar investigations into Google’s ad tech practices are ongoing in the US

Similar investigations into Google’s ad tech practices are ongoing in the US

Similar investigations into Google’s ad tech practices are ongoing in the US

Google logo displayed on a platform with trees in the background and flowers in the foreground.
Google logo displayed on a platform with trees in the background and flowers in the foreground.
Google logo displayed on a platform with trees in the background and flowers in the foreground.

Hightlights:

  • The CMA claims Google is using its market dominance to prevent fair competition in the UK's digital advertising market.

  • A financial penalty of up to 10% of Google's annual worldwide turnover could be imposed if it breaches competition law.

  • Google disputes the CMA's findings and plans to respond to the claims.

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The UK Competition and Markets Authority (CMA) has found that Google has abused its dominance in the ad tech market to hinder competition. Juliette Enser, CMA's Interim Executive Director of Enforcement, stated, "We've provisionally found that Google is using its market power to hinder competition when it comes to the ads people see on websites." 

CMA’s allegation against Google

The CMA's investigation alleges that Google's anti-competitive practices have created an unfair market for digital advertising. It claims that businesses rely on Google’s services when placing digital ads on websites. This antitrust action stifles competition and may be harming publishers and advertisers in the UK.

Enser emphasized the importance of competition in digital advertising. She noted that advertisers' campaigns reach millions of people in the UK and help connect consumers with buyers. This is why "It’s crucial that publishers and advertisers – who enable this free content – can benefit from effective competition." 

Potential consequences for Google’s antitrust abuse 

If the CMA concludes that Google has violated competition law, it could face a financial penalty of up to 10% of its annual revenue. Google could also face other legal actions that might put an end to its illegal practices. 

Google's response to the CMA’s findings

Google’s VP of Global Ads, Dan Taylor, stated that "the core of this case rests on flawed interpretations of the ad tech sector. We disagree with the CMA's view and will respond accordingly." He claimed that Google’s advertising technology helps websites and apps fund their content and reach new customers.

Google's similar antitrust troubles

Google's activities in the ad tech sector are also under investigation by the US Department of Justice and the European Commission. In 2023, the European Union's competition regulators indicated that Google might need to sell part of its ad tech business to address similar concerns. 

Google is also appealing a UK court decision that allows a £13.6 billion lawsuit over its anti-competitive practices.

Recently, Yelp filed a lawsuit accusing Google of unfair business activities. This follows a ruling by a U.S. federal judge that Google used its dominance in search to maintain its monopoly. This ruling has opened the door for a potential breakup of Google's Chrome browser and Android system.

09/06/2024

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