Google has come under intense scrutiny from the UK’s Competition and Markets Authority (CMA) after the regulator provisionally found that the tech giant has been abusing its dominant position in the ad tech market. The CMA’s investigation suggests that Google has been engaging in anti-competitive practices within the open-display ad tech sector, which is potentially harming thousands of UK advertisers and publishers.
According to the CMA’s findings, Google has been using its publisher ad server and ad buying tools to favour its own ad tech services, thereby limiting competition. The vast majority of UK publishers and advertisers rely on Google’s ad tech services to bid for and sell online ad space, with approximately £1.8 billion spent annually on open-display advertising as of 2019. The regulator is particularly concerned that Google is actively leveraging its market dominance to prevent competitors from competing fairly.
Juliette Enser, Interim Executive Director of Enforcement at the CMA, commented: “We’ve provisionally found that Google is using its market power to hinder competition when it comes to the ads people see on websites. It’s crucial that publishers and advertisers benefit from fair competition and get a good deal when buying or selling digital advertising space.”
The CMA’s findings arrive just days before Google faces a US antitrust trial and amid ongoing investigations by EU regulators into similar concerns. The UK’s provisional ruling centres on Google’s alleged “self-preferencing,” where the tech giant favours its own services over rivals, particularly through its publisher ad server (DoubleClick for Publishers, or DFP) and its ad exchange (AdX). These tools reportedly give Google an unfair advantage, allowing it to offer advertisers exclusive or preferential access and submit higher-value bids compared to rival exchanges. This practice has been in place since at least 2015, according to the CMA.
Google’s potential abuse of its market position extends beyond the UK. Both the US Department of Justice and the European Commission are conducting their own investigations into Google’s activities in the ad tech space.
If the CMA’s findings are confirmed, Google could face substantial penalties, with the regulator able to impose fines of up to 10% of Google’s annual worldwide turnover. The tech giant has the opportunity to respond to the CMA’s objections before the final decision is made. However, this case highlights the increasing global pressure on Google’s dominance in the digital advertising industry.
Paul Bainsfair, Director General of the Institute of Practitioners in Advertising (IPA), expressed concern over the findings, noting that the “abuse of dominant positions through the operation of both publisher ad servers and buying tools to restrict competition in the UK” contradicts the best interests of advertisers and publishers.
As this investigation progresses, Google may face further consequences, not just from the CMA but from a class action lawsuit in the UK, which accuses the company of holding a “vice-like grip” on online advertising. The lawsuit, valued at £13.6 billion, is scheduled for trial in 2025.
Google’s position as a dominant force in ad tech is now under intense scrutiny, with regulators and industry stakeholders seeking to ensure a more competitive and transparent marketplace for digital advertising.
