Google accused of using advertising dominance to inflate publisher fees

The UK’s Competition and Markets Authority (CMA) has accused Google of abusing its dominant position in the online advertising market by allegedly inflating prices for publishers and stifling competition.

The CMA issued a statement on Friday with allegations against the tech giant after an investigation found Google’s actions may be unlawful.

The case joins a series of global challenges to Google’s control over digital advertising, with similar actions being brought in the U.S. and EU. The regulator says Google’s control over many steps of the online ad “stack” — the split-second auction system used to place ads on websites — allows it to overcharge publishers while marginalizing competing advertising services.

Google controls a significant portion of both the ad servers that sell space and the online exchanges where ads are bought and sold, with advertisers spending billions a year to display ads. The CMA’s interim executive director of enforcement, Juliette Enser, highlighted the impact on companies 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 called on the CMA to act quickly under new competition rules that create a specialist digital markets unit within the regulator. Owen Meredith, the association’s chief executive, stressed the need for urgency, saying: “We need the new digital markets regulator to start investigating the big tech platforms as soon as possible, and Google Search and Google Ad Tech would be priorities to set.”

He added: “By levelling the playing field we can create a digital economy for the UK that fosters real competition, driving growth in these key markets.”

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

The CMA has the power to fine Google or require it to cease anti-competitive practices. There are ongoing discussions in the EU that Google may need to be split up to address market imbalances.

Google will face a U.S. court hearing next week on similar antitrust charges brought by the Justice Department, after recently losing a separate competition case over its dominance of the search engine market. As Google prepares to defend its advertising practices in court, the mounting legal pressure underscores the global scrutiny of its market power.

Jamie Young

Jamie is an experienced business journalist and Senior Reporter at Business Matters, with over 10 years of experience in business reporting for SMEs in the UK. Jamie has a degree in Business Administration and regularly attends industry conferences and workshops to stay at the forefront of emerging trends. When he’s not covering the latest business events, Jamie is passionate about mentoring aspiring journalists and entrepreneurs, sharing his knowledge to inspire the next generation of business leaders.