UK CMA accuses Google of manipulating ad auctions
The United Kingdom’s competition regulator says Google is using anti-competitive practices in its ad tech business. According to the Competition and Markets Authority (CMA) of the UK, Google’s actions could potentially harm numerous UK publishers and advertisers. The regulator's preliminary investigation reveals that Google’s dominance in the advertising sector is being misused through practices such as manipulating advertisers’ bids to give them an advantage in AdX’s auction.
Google's Role in Ad Tech
The ad tech stack consists of various entities that enable the display of ads on websites and mobile apps. When a user accesses a website or app, rapid auctions occur to determine the ad displayed. These auctions involve sellers (digital publishers), buyers (advertisers), and intermediaries facilitating bid requests and submissions.
Google's Alleged Actions
Since 2015, Google has allegedly been self-preferencing its products and services, strengthening AdX’s market position while impeding rival ad exchanges. The highly integrated nature of Google’s advertising business reportedly thwarts competition, preventing other publisher ad servers from effectively challenging DFP. The CMA has notified Google of these concerns and is awaiting the company's response before making a final decision.
Previous Anti-Competitive Allegations Against Google
This is not the first time Google has faced accusations of anti-competitive behavior. In January 2023, the US Government filed a lawsuit against Google for alleged anticompetitive practices in the digital advertising market. A trial for this case is scheduled to commence on September 9. Additionally, the EU and the UK’s Competition Appeal Tribunal have also initiated investigations into Google’s practices.
Similarly, the Alliance of Digital India Foundation (ADIF) has accused Google of anti-competitive behavior in India's advertising sector. Allegations include self-preferencing products like DoubleClick for publishers and Display & Video 360 with AdX.
For more information, you can visit MEDIANAMA.