faces increased scrutiny over its ad tech practices after the UK competition watchdog tech-practices-in-bid-to-help-uk-advertisers-and-publishers” rel=”nofollow noopener” target=”_blank” data-ylk=”slk:provisionally found;cpos:2;pos:1;elm:context_link;itc:0;sec:content-canvas” class=”link “> In a statement of objections, the Competition and Markets Authority said Google is harming competition in the country “by using its dominant position in online display advertising to favour its own advertising technology services.”
The watchdog tech-practices-in-bid-to-help-uk-advertisers-and-publishers” rel=”nofollow noopener” target=”_blank” data-ylk=”slk:contends that;cpos:3;pos:1;elm:context_link;itc:0;sec:content-canvas” class=”link “>Since 2015, Google has leveraged its dominant position in the sector as operator of the Google Ads and DV260 ad-buying tools and DoubleClick For Publishers, an ad server for publishers, to bolster its AdX advertising exchange platform. The CMA said AdX is at the heart of the company’s ad tech stack and is the platform on which it charges the highest fees to advertisers – roughly 20 percent of each bid for ad space processed there.
The CMA provisionally concluded that “the vast majority of publishers and advertisers use Google’s advertising technology services to bid for and sell advertising space” on websites. By giving preference to its own services, “Google puts competitors at a disadvantage and prevents them from competing on a level playing field to offer publishers and advertisers a better and more competitive service that supports their business growth,” the CMA said.
The statement of objections gives Google the opportunity to provide feedback, and the CMA will consider those submissions before making a final decision. A panel for the case is made up of three people (none of whom were involved in the preliminary investigation or in submitting the statement of objections). If the CMA ultimately finds that Google has breached competition rules, it can fine the company up to 10 percent of its global annual revenue and order legally binding changes to the ad tech business.
Google disagrees with the decision and “will respond accordingly,” said Dan Taylor, vice president of Google Ads. “Our ad technology tools help websites and apps fund their content and enable businesses of all sizes to effectively reach new customers,” Taylor said. tech-practices.html” class=”link rapid-with-clickid etailiffa-link” rel=”nofollow noopener” target=”_blank” data-ylk=”slk:CNBC;elm:affiliate_link;sellerN:CNBC;elmt:;cpos:4;pos:1;itc:0;sec:content-canvas”> In a statement, Google remains committed to creating value for its publisher and advertiser partners in this highly competitive sector. The core of this case is based on misinterpretations of the advertising technology sector.
Regulators in other countries have criticized Google's stance in the advertising technology space. The European Commission accused the company of “abusive practices” in the online advertising space in June last year. The EC said a possible order for Google to implement corrective measures might not be enough to address those practices.
Meanwhile, the Justice Department and Google are preparing to face off in a trial set to begin Monday. The agency has asked that the company’s ad tech business be broken up, citing an alleged illegal monopoly Google has in that market. Google failed in a . Last month, a federal judge ruled that Google should be allowed to participate after a trial that arose from a separate Justice Department lawsuit.
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