Regulators from both sides of the Atlantic are putting increasing pressure on Google because of its hegemony in digital advertising. The tech giant was charged with anti-competitive behavior on Friday, September 6, by the UK’s Competition and Markets Authority (CMA) in the country’s 1.8 billion pound (USD 2.4 billion) digital ad market.
This is happening while Google is scheduled to go on trial in a second antitrust case next week. In that case, the U.S. Department of Justice will argue that Google’s advertising division has operated like a monopoly, driving up the cost of ads for consumers. Regarding Google, the emphasis shifts to its advertising tools, which are a component of the $200 billion digital ad business.
What UK regulator claims
According to the CMA, Google has been stifling competition for online publishers and advertisers by favoring its own services with the use of its market dominance. The watchdog’s probe can result in directives to modify Google’s conduct or a sizable fine.
The European Union and the US Justice Department are also investigating Google’s digital advertising business, which includes ad servers, tools for advertisers, and an ad exchange.
The CMA asserted that since 2015, Google has been abusing its market dominance to bolster the position of its own AdX ad exchange, which commands greater fees than other exchanges. Additionally, the regulator accused Google of favoring AdX in auctions and rigging advertiser bids.
Google refuted the claims and declared that it is still dedicated to adding value for its partners. Nonetheless, the CMA has the authority to issue a legally enforceable order to cease anti-competitive actions or levy a fine equal to up to 10% of the business’s yearly global revenue.
Also read: Unveiling the Ethical Imperatives: Navigating the Intersection of AI and Cybersecurity
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