Google has been under fire from UK regulators for allegedly abusing its dominance in the digital advertising market to hinder competition. The business faces a 10% annual sales fine.
Google provides infrastructure for publishers to manage ad space, offers tools for advertisers to buy display advertisements, and operates an ad exchange platform where ad space is sold in real-time.
This integrated involvement across the supply chain has raised concerns about using Google’s influence to unfairly hinder competitors.
“We have provisionally found that Google is using its market power to hinder competition in the digital ads people see on websites,” said Juliette Enser, the CMA’s interim executive director of enforcement, in a statement.
The regulator is now assessing what steps should be taken to address these practices, with the possibility for a fine of up to 10% of Google’s annual global revenue. In 2023, the company’s sales was $307.39 billion. AP News was the first to report.
According to the UK’s Competition and Markets Authority (CMA), Google’s tactics, particularly in Britain’s £1.8 billion ($2.4 billion) digital advertising market, allegedly prefer its own services over publishers and advertisers.
The CMA’s claims come after a two-year inquiry into Google’s role in the digital advertising ecosystem, where the corporation is a key player.
