The UK's Competition and Markets Authority has hit Google with fresh allegations of anti-competitive practices, this time accusing the giant of abusing its dominance in online advertising. A provisional probe suggested that Google had been holding off competitors by denying them access to the most important advertising technologies.
According to the CMA, Google's actions may be unlawfully harming fair competition provided by thousands of businesses in the UK, mainly publishers and advertisers. Businesses in the UK annually spend billions on online advertising, with the majority of these businesses relying on the services of Google for ad placements on websites.
The investigation is accusing Google of creating an uneven playing field by favoring its advertising technology over competitors. If the allegations are proven, it could face a fine of up to 10% of its global turnover, which may reach billions.
Google has denied the assertions, describing the findings as "flawed." A spokesman said UK businesses choose its services because they perform very well and have helped advertisers grow.
The CMA investigation forms part of a wider, global probe into the dominance of Google in the ad tech marketplace. Similarly, the European Commission has indicated that, unless Google gives up parts of its advertising business, it won't be able to solve the competition concerns step Google says is "disproportionate."
The plot thickens as in a recent news, a European court adviser, in a binding ruling, stated that Google had violated the EU's competition rules by restricting access to the Enel JuicePass app on the car connectivity system of Android Auto to favor its own Google Maps. This is why, in 2021, Google was fined EU€102 million by the Italian antitrust authority due to this very infringement.
Google also intends to appeal the decision of a UK court that allowed a class-action lawsuit worth EU£13.6 billion to proceed, on grounds that Google caused financial losses to UK publishers through its anti-competitive conduct. Read more
In due course, the CMA will now take into consideration representations by Google before issuing its final order. In case it is found guilty of violating competition rules, Google may face very serious financial consequences, apart from legally binding corrective actions.
Juliette Enser, interim executive director, of enforcement at the CMA said, "Publishers and advertisers have to benefit from effective competition so that they get a fair deal when buying or selling ad space."
Google has always maintained that its ad technology plays an integral role in financing online content and is an enabler for companies to find more customers, yet continued investigations by the US Department of Justice and regulators in Europe prove otherwise. Thus, UK authorities will continue investigating to ensure the ad-tech practices of the search giant are fair.