UK regulator red flags Google's 'anti-competitive practices': Reports

Britain's CMA claims Google has been favouring its own services, harming online publishers and advertisers in the country’s USD 2.4 billion digital ad market.

United Kingdom's Competition and Markets Authority (CMA) has accused global tech giant Google of using its 'dominance' in digital advertising to stifle competition in Britain, according to media sources. The principal competition regulator in the UK has pointed out that Google has been favouring its own services, harming online publishers and advertisers in the country’s £1.8 billion (USD 2.4 billion) digital ad market.

The regulator has accused Google of exploiting its dominance since 2015 to bolster its AdX ad exchange and shield it from competitors. According to the CMA, AdX charges the highest fees in the ad tech ecosystem, taking around 20% of bid amounts.

These charges were outlined in a CMA statement of objections following a two-year investigation. "We've provisionally found that Google is using its market power to stifle competition in the ads people see on websites," said Juliette Enser, interim executive director of enforcement at CMA, in a press release.

The regulator claims that Google manipulates advertiser bids, giving them higher value in AdX auctions compared to rival exchanges. Additionally, AdX is allowed to bid first in auctions run by Google's publisher ad server, potentially excluding competitors from bidding, according to the watchdog.

This adds to the mounting pressure Google faces on both sides of the Atlantic over its ad tech business practices. While the European Union's antitrust authorities are scrutinising Google’s ad bidding practices, the company also faces a state-led antitrust lawsuit set for trial this month in the US.Even as CMA claims Google's anti-competitive conduct is ongoing, the global tech giant has refuted the allegations.

"The core of this case is based on flawed interpretations of the ad tech sector. We disagree with the CMA's view and will respond accordingly," Google said in a statement.

CMA is considering to impose a fine of up to 10% of the company’s annual global revenue to dissuade Google from anti-competitive practices.

Also Read: Google's digital ad dominance faces scrutiny in US antitrust trial: Reports