UK CMA Accused Google of Ad Market Monopoly
The UK Competition and Markets Authority accused Google of suppressing competitors by giving priority to its own advertising exchange platform AdX.
Recently, the UK Competition and Markets Authority (CMA) filed charges against Google, accusing it of abusing its dominant market position in the advertising market and suppressing competitors by giving priority to its own advertising exchange platform AdX.
CMA pointed out that Google not only gave priority to AdX in the bidding process, but also may further weaken the market opportunities of other competitors by raising advertisers' bids on the platform.
Google opposed the findings of the investigation and is ready to defend. If Google is finally found to have violated the UK Competition Act, it will face a huge fine of up to 10% of its global annual revenue, which will have a major impact on its business.
In addition to the traditional advertising bidding market, Google's "Privacy Sandbox" technology has also sparked new controversy. The technology is designed to replace third-party cookies and improve data security by enhancing user privacy protection. However, some advertising technology companies and regulators questioned that Google may use this technology to further monopolize the digital advertising market.
Several senior executives of advertising technology companies said that the development of technology to adapt to the privacy sandbox is a huge burden for small companies. Some companies have invested millions of dollars, but the uncertainty of technological development has significantly increased investment risks.
Google is not only under pressure in the UK, but is also under investigation by US and European regulators.
The U.S. Department of Justice is evaluating whether Google needs to be split up, especially its advertising technology division, which contributed more than $20 billion in revenue in 2020. Last month, a U.S. court ruled that Google has monopolistic behavior in the online search market, a ruling that could lay the foundation for broader antitrust action.
In addition, the European Union also launched an investigation into Google this year to review whether it complies with the requirements of the Digital Markets Act and assess whether its policies have caused harm to consumers.
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