Google has been accused by the UK’s Competition and Markets Authority (CMA) of abusing its dominance in the online advertising market, allegedly overcharging publishers and stifling competition.
The CMA issued a statement of objections to the tech giant on Friday, following an investigation that suggested Google’s actions may be illegal.
The case adds to a series of global challenges against Google’s control over digital advertising, with similar actions ongoing in the US and EU. The regulator claims that Google’s grip on multiple stages of the online advertising “stack”—the split-second auction system used to place ads on web pages—allows it to charge publishers inflated fees while sidelining rival advertising services.
Google controls a significant share of both the advertising servers that sell space and the online exchanges where ads are bought and sold, with advertisers spending billions annually on display adverts. The CMA’s interim executive director of enforcement, Juliette Enser, 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 British news organisations, urged the CMA to act swiftly under new competition laws that establish a specialist 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 the large tech platforms as quickly as possible, with Google Search and Google ad tech as top priorities for designation.”
He added, “By levelling the playing field, we can create a digital economy for the UK which fosters genuine competition, powering growth in these critical markets.”
Google, however, disputes the CMA’s accusations. Dan Taylor, Google’s vice president of global ads, criticised the charges, stating: “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.”
The CMA has the authority to fine Google or demand it ceases anti-competitive practices. In the EU, there are discussions that Google might need to be broken up to address the market imbalance.
Next week, Google will face a US trial over similar anti-monopoly charges brought by the Department of Justice, following its recent loss in a separate competition case concerning its dominance in the search engine market. As Google prepares to defend its advertising practices in court, the mounting legal pressures underscore the global scrutiny of its market power.
