After the United States and the European Union, it is the turn of the United Kingdom to accuse Google of abusing its dominant position in online advertising, a new blow to one of the Californian giant’s historic services and its main source of revenue.
The conclusions of the British competition authority, the CMA, issued after two years of investigation, are for the moment only “provisional”, pending the responses that Google will provide.
They come three days before the opening on Monday in the United States of a sensational trial launched by the American Department of Justice against the company’s sales technologies in advertising.
And a few months after conclusions similar to those of the CMA, rendered by the European Commission, which could result in a heavy fine, or even a forced dismantling of the company – the weapon of last resort.
Online advertising remains Google’s main source of revenue, selling ad space on its own sites and apps and serving as an intermediary between advertisers and third-party sites or apps.
The services provided by the company include digital tools to manage advertising spaces, tools to manage automated campaigns and ad exchanges for buying and selling spaces.
– “Misinterpretations” –
According to the British regulator, the Mountain View group “abused its dominant position by exploiting its publisher ad server and purchasing tools in order to restrict competition in the United Kingdom”.
As a result, Google’s competitors were unable to “compete on a level playing field to offer publishers and advertisers a better and more competitive service.”
“Thousands of UK publishers and advertisers” may have been harmed, the regulator said.
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“The CMA will now carefully consider Google’s submissions before making its final decision,” it said in its statement.
“The heart of this case is based on misinterpretations by the ad tech industry. We disagree with the CMA’s view,” said Dan Taylor, vice president of global advertising for Google.
In 2019, UK advertisers spent around £1.8bn on online advertising to UK consumers, according to the UK regulator.
The CMA’s findings on Google’s service, which has been criticized for years, are hardly a revelation. But they open a new front in global attempts to limit or regulate Google’s practices in online advertising, and more generally the power of tech giants.
Two class actions have already been launched against Google in the UK over its prominent position in online advertising.
One at £13.6bn for reducing revenues for content publishers – by lowering ad revenues while raising prices for using its advertising platform.
The other is fined £7bn for using its dominant position to increase prices paid by advertisers seeking to improve their positioning.
– Pop-up –
In the United States, the trial expected on Monday follows a complaint from the Department of Justice, which accuses the company of having “used illegal methods” to “eliminate or drastically reduce any threat to its dominance” in advertising.
The ministry and eight US states are demanding a fine and the sale of its activities related to the sale of advertising space.
They point out that Google controls the technologies used by “virtually all websites” to sell banners or pop-ups, but also the tools used by advertisers to buy these spaces, and the market where the transactions take place.
The tech giant, known for its search engine, also operates the YouTube online video streaming platform and the Android mobile operating system.
Alphabet, its parent company, achieved a turnover of 84.74 billion dollars (+14%) in the second quarter of 2024, from which it generated a net profit of 23.6 billion, up 28%.
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