Google is facing accusations of anti-competitive behaviour in the UK’s open-display ad tech market by the Competition and Markets Authority (CMA).

The watchdog claims Google’s market dominance and “self-preference” could harm thousands of UK publishers and advertisers.

It suggests Google disadvantages competitors and prevents them from “competing on a level playing field”.

“We’ve provisionally found that Google is using its market power to hinder competition when it comes to the ads people see on websites,” the CMA’s interim executive director Juliette Enser says.

The CMA’s investigation focuses on Google’s role in three key parts of the digital ad tech supply chain, where it holds a powerful market share. Google’s ad-buying tools, including Google Ads and DV360, along with its publisher ad server tool, DoubleClick For Publishers (DFP), and its ad exchange AdX, have been flagged as central to the anti-competitive practices.

It has provisionally found that Google has abused its dominant positions through the operation of its publisher ad server and buying tools to restrict competition in the UK. Additionally, Google’s conduct has prevented rival publisher ad servers from competing effectively with DFP, harming competition in this market.

The CMA claims Google has been manipulating bids, giving its own ad exchange preferential treatment, and hindering rivals by allowing AdX to bid first in auctions run by DFP.

The watchdog will now consider representations from Google before deciding what actions to take.

“Many businesses are able to keep their digital content free or cheaper by using online advertising to generate revenue. Adverts on these websites and apps reach millions of people across the UK – assisting the buying and selling of goods and services,” Enser says.

“That’s why it’s so important that publishers and advertisers – who enable this free content – can benefit from effective competition and get a fair deal when buying or selling digital advertising space.”

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The US Department of Justice and European Commission have also opened separate investigations into Google’s activities in ad tech.

Most recently, a US court found Google guilty of building an illegal monopoly over the online search and advertising industry.

The tech giant was sued in 2020 by the US Department of Justice over its control of roughly 90% of the online search market and nearly 95% of all searches on smartphones.

The lawsuit followed years of concern from states and the government that Google had too firm a grip on the online search industry and a desire to see it open up to greater competition.

The judge ruled that Google was acting illegally in order to secure dominance in the market and suppress competition.