Google Faces Global Pressure as UK and US Regulators Push for Ad Tech Breakup

Google’s advertising empire is facing increased global scrutiny, with regulators in the UK and US zeroing in on the company’s dominance in the ad tech market. The UK’s Competition and Markets Authority (CMA) has provisionally found that Google has been abusing its dominant position in online display advertising, harming competition by favoring its own services.

Since 2015, the CMA alleges, Google has leveraged its position as the operator of Google Ads, DV360 ad-buying tools, and DoubleClick For Publishers to strengthen its AdX advertising exchange, which is central to its ad tech stack. The watchdog noted that AdX charges the highest fees — around 20% of each bid for ad space — and is used by the vast majority of publishers and advertisers in the UK. This allows Google to preference its own tools over competitors, stifling competition and potentially preventing better services for publishers and advertisers.

The CMA’s statement of objections gives Google an opportunity to respond before a final decision is made. If the regulator finds Google guilty of breaching competition rules, the company could face a fine of up to 10% of its global annual revenue and be forced to make legally binding changes to its ad tech operations.

Google, however, disagrees with the allegations. Dan Taylor, Vice President of Google Ads, stated, “Our advertising technology tools help websites and apps fund their content and enable businesses of all sizes to effectively reach new customers.” He also called the CMA’s findings “flawed interpretations of the ad tech sector.”

This isn’t the first time Google has come under fire for its ad tech practices. The European Commission (EC) leveled similar accusations last year, warning that Google’s “abusive practices” in online advertising may require drastic remedies, including the potential breakup of its ad business.

Across the Atlantic, Google is preparing for a showdown with the US Department of Justice (DOJ) over its alleged illegal monopoly in the ad tech space. The trial is set to begin soon, with the DOJ pushing for a breakup of Google’s ad tech business. A federal judge already ruled that Google violated antitrust laws in a separate case concerning its search monopoly.

As global regulators take a closer look at Google’s dominance in digital advertising, the tech giant’s future in the space hangs in the balance.

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