UK watchdog is investigating whether Google restricts competition in ads
Google plays in the"ad tech stack," or the set of services that facilitate the sale of online advertising space between advertisers and sellers like online content providers. The organization explained that Google has strong positions at various levels of the ad tech stack and charges fees to both publishers and advertisers.
It's examining three key parts of the stack in which Google plays key roles, since it owns the largest providers for each. CMA will examine Google's practices for demand-side platforms, which give advertisers and media agencies a way to buy a publishers' space for advertising from many sources. It will also look into the company's practices relating to ad exchanges that can automate the sale of publishers' inventory.
Google's practices — if indeed questionable — could distort competition, the CMA said. It could contractually tie these various services together, for instance, so users won't have a choice but to go with Google all the way, making it difficult for smaller rival services to compete. "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.
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