UK’s antitrust watchdog objects to Google’s ad tech practices

Google (NASDAQ:GOOG) (NASDAQ:GOOGL) is using anti-competitive practices in open-display ad tech, which may be harming U.K. publishers and advertisers, an investigation by the U.K. competition watchdog provisionally found.

As set out in a statement of objections issued to Google today, the Competition and Markets Authority (CMA) provisionally found that, when placing digital ads on websites, the vast majority of publishers and advertisers use Google’s (GOOG) (GOOGL) ad tech services in order to bid for and sell advertising space.

The authority said it is “concerned” that Google is actively using its dominance in this sector to preference its own services. The CMA provisionally found that, since at least 2015, Google has abused its dominant positions through the operation of both its buying tools and publisher ad server in order to strengthen AdX’s market position and to protect AdX from competition from other exchanges.

AdX, an ad exchange operated by Google, typically receives requests for bids from publishers and responding bids from advertisers, and then conducts an auction to match these two sides. AdX is where Google charges its highest fees in the ad tech stack (approximately 20% of the bid amount), CMA said.

“We’ve provisionally found that Google is using its market power to hinder competition when it comes to the ads people see on websites,” said Juliette Enser, Interim Executive Director of Enforcement.

The authority will now carefully consider representations from Google before reaching its final decision.

The U.S. Department of Justice and European Commission have also opened separate investigations into Google’s activities in ad tech. These proceedings are currently ongoing.