UK Regulator Says Google's Ad Practices May Have Broken Competition Law
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Key TakeawaysThe U.K.'s Competition and Markets Authority (CMA) said Google may have broken U.K. competition laws by abusing its influence and using “anti-competitive” practices in prioritizing its own ad exchange.The CMA's provisional findings offer Google a chance to respond to the agency’s allegations. Should the CMA find Google in violation of U.K. competition laws, it could fine the company as much as 10% of its annual revenue.
The U.K.'s Competition and Markets Authority (CMA) said Alphabet's (GOOGL) Google may have broken U.K. competition laws by abusing its influence and using “anti-competitive” practices in prioritizing its ad exchange.The CMA, which governs competition, similar to antitrust, said Google effectively inflated advertiser bids made through the company's ad exchange, AdX. It also accused Google of letting AdX bid first in auctions run by the company-owned publisher advertising server, meaning rivals may not get the chance to bid. Google Could Potentially Face Hefty FinesThe CMA's provisional findings allow Google the chance to respond to the agency’s allegations."The core of this case rests on flawed interpretations of the ad tech sector. We disagree with the [CMA's] view and we will respond accordingly,” said Dan Taylor, Google vice president of global ads.Should the CMA find Google to be in violation of the U.K.’s Competition Act 1998, it is authorized to fine the company as much as 10% of its annual revenue. Google Also Faces Regulatory Scrutiny in US, EuropeThe CMA isn’t the only regulatory agency looking into Google's business practices. The U.S. Department of Justice is reportedly considering breaking up Google following a federal court's decision last month that the company maintains an illegal monopoly over the search market.The European Union had also opened an investigation earlier this year over concerns about whether changes Google and other tech giants made to comply with the body’s Digital Markets Act were enough to meet the new law's requirements and whether policies could still harm consumers. Read the original article on Investopedia.
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