Google accused of exploiting advertising dominance to overcharge publishers

The UK Competition and Markets Authority has accused Google of abusing its dominance in the online advertising market, by overcharging publishers and stifling competition.

The Competition and Markets Authority issued a statement of objections to the tech giant on Friday, following an investigation that suggested Google’s actions may be unlawful.

The case adds to a series of global challenges to Google’s dominance of digital advertising, with similar actions ongoing in the US and the EU. The regulator alleges that Google’s control over multiple stages of the online advertising “package” — the fast-track auction system used to place ads on web pages — allows it to overcharge publishers while sidelining rival ad services.

Google controls a large share of both the ad servers that sell online space and the exchanges where ads are bought and sold, with advertisers spending billions of dollars a year on display advertising. Juliet Enser, interim executive director of the Competition and Markets Authority, highlighted the impact on businesses that rely on online advertising to keep digital content free or affordable, noting the importance of ensuring publishers and advertisers benefit from fair competition.

The News Media Association, which represents UK news organisations, has urged the Competition and Markets Authority to move quickly under new competition laws that create a dedicated digital markets unit within the regulator. Owen Meredith, chief executive of the association, stressed the need for urgent action, saying: “We need the new digital markets regulator to start its work investigating big tech platforms as soon as possible, with Google search and Google’s advertising technology being a top priority for appointment.”

“By providing a level playing field, we can create a UK digital economy that fosters real competition and drives growth in these vital markets,” he added.

But Google rejects the CMA’s allegations. Dan Taylor, Google’s vice president of global advertising, criticised the allegations, saying: “The crux of this case is based on misinterpretations of the ad tech industry. We disagree with the CMA’s view and will respond accordingly.”

The Competition and Markets Authority has the power to fine Google or require it to stop anti-competitive practices. In the European Union, there are discussions about whether Google should be broken up to address market imbalances.

Next week, Google will face trial in the United States on similar antitrust charges brought by the Justice Department, following its recent loss in a separate competition case over its dominance of the search engine market. As Google prepares to defend its advertising practices in court, mounting legal pressure is underscoring global scrutiny of its market power.