Watchdogs Report Google Favoring Its Own Services And Limiting Competition.

The UK’s Competition and Markets Authority (CMA) has accused Google of abusing its dominance in tech advertising, stating that the company favors its own services and limits competition.

The CMA’s statement of objections, released on Friday, says that Google’s actions create an uneven playing field for rivals in the ad tech sector. A final decision will be made by a separate panel after considering feedback from Google.

The investigation revealed that most publishers and advertisers rely on Google’s ad tech services to buy and sell digital advertising space. The CMA believes that Google uses its market power to prioritize its own services, making it harder for competitors to offer more competitive options to publishers and advertisers.

This has raised concerns that Google’s behavior is limiting competition and preventing businesses from getting a fair deal.

According to Bloomberg, Juliette Enser, the CMA’s interim executive director of enforcement, stated that the authority’s provisional findings point to Google abusing its market power. She explained, “Google is using its market power to hinder competition when it comes to the ads people see on websites.”

Bloomberg reported that Google disagrees with the CMA’s findings. Dan Taylor, Google’s VP of Global Ads, said the case is based on misinterpretations of the ad tech sector. He added that the company plans to issue a formal response.

“Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers,” Taylor said to CNBC.

This is not the first time Google has faced scrutiny over its advertising practices. Last year, EU regulators have also raised concerns about the company’s dominance in the tech advertising market, accusing Google of favoring its own ad exchange program over competitors, giving it an unfair advantage in the industry.

The European Commission suggested that Google might need to restructure its ad tech business to address these concerns. Bloomberg points out that in July 2023, the European Commission noted that simply requiring Google to implement behavioral changes might not be enough to address its anti-competitive practices.

This raises the possibility of a more drastic measure, such as ordering Google to separate its ad tech business from its core services.