The Competition and Markets Authority (CMA) has launched a second investigation into Google’s practices in ad technology, following a probe into its Meta ‘Jedi Blue’ agreement two months ago.
The ‘ad tech stack’, also known as advertising technology intermediation, is a ‘complex’ set of services that facilitate the sale of online advertising space between sellers such as publishers and buyers (advertisers).
The CMA is investigating whether Google has abused its strong positions at the various levels of this ad tech stack in order to distort ad-space-selling competition.
“These include whether Google limited the interoperability of its ad exchange with third-party publisher ad servers and/or contractually tied these services together, making it more difficult for rival ad servers to compete,” the CMA added.
Three key parts of the ad tech stack chain will be investigated, including the demand-side platforms which allow advertisers to buy publishers’ advertising inventory, ad exchanges which provide automate sale technology and publisher ad servers which manage the publisher’s inventory and decide which ad to show.
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The authority is also concerned that the technoloogy company may have used its publisher ad sever to illegally favour its own ad exchange services, while ensuring that it excluded the services offered by ad-space rivals.
“We’re worried that Google may be using its position in ad tech to favour its own services to the detriment of its rivals, of its customers and ultimately of consumers,” CMA chief executive Andrea Coscelli said.
“This would be bad for the millions of people who enjoy access to a wealth of free information online every day.”
“Weakening competition in this area could reduce the ad revenues of publishers, who may be forced to compromise the quality of their content to cut costs or put their content behind paywalls. It may also be raising costs for advertisers which are passed on through higher prices for advertised goods and services.”
“It’s vital that we continue to scrutinise the behaviour of the tech firms which loom large over our lives and ensure the best outcomes for people and businesses throughout the UK.”
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