Google Hit by UK Regulators for Anti-Competitive Behaviour Through Digital Ads
Google is reportedly facing accusations from the UK's Competition and Markets Authority (CMA) for anti-competitive behaviour in the digital advertising market. CMA alleges tech giant has misused its dominant position to favour its own services to suppress competition.
New Delhi, September 7: Google has been reportedly accused of anti-competitive behaviour by a British regulator. The tech giant is said to have misused its dominance in the digital ads market in the United Kingdom. The accusation adds to the growing pressure on the US-based company, which is already facing scrutiny on both sides of the Atlantic for its ad-tech business practices. The British regulator's findings could potentially lead to significant penalties or orders for Google to change its behaviour in the digital advertising market.
As per a report of MoneyControl, the British regulator has accused Google of exploiting its dominant position in the digital advertising segment to suppress competition in the UK. The Competition and Markets Authority (CMA) alleges that Google favours its own services over those of other online publishers and advertisers affecting the USD 2.4 billion digital ad market. The CMA's investigation could result in fines or changes in Google's business practices. Google Launches 5 New Android Features: Gemini-Powered TalkBack, Circle to Search for Music, Earthquake Alert and More.
Google's online advertising business is currently being investigated by the European Union for potential antitrust violations. Additionally, the US Justice Department has filed a lawsuit against Google regarding its digital ad business, and the trial for this case is scheduled to begin this month. The UK watchdog has reportedly accused Google of using its dominant position in the market since 2015 to benefit its own AdX ad exchange and prevent competition.
The regulator has accused Google of unfairly manipulating advertiser bids to give them more value when they enter AdX auctions compared to rival exchanges. AdX is a platform where Google charges the highest fees in the advertising technology system, taking around 20 per cent of the bid amount. AdX also has the advantage of bidding 1st in auctions run by Google's publisher ad server, which prevents other companies from having a fair chance to bid. Google Meet New Feature Update: Tech Giant Introduces New Video Calling Features in Meet for Android and iOS Users; Check Details.
The CMA is currently investigating Google's actions and deciding on the necessary steps to stop its unfair practices that hinder competition. The CMA can impose fines of up to 10 per cent of a company's yearly global revenue or issue a legally binding order to stop any violations of competition laws.
(The above story first appeared on LatestLY on Sep 07, 2024 03:10 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).