The owner of Google and Facebook Meta is being investigated by the UK competition regulator for concerns that they have hindered competition in the online display advertising service markets.
The Competition and Markets Authority is focusing on whether companies have restricted or prevented the adoption of header offer services and whether Google has also affected the ability of other companies to compete with its products in this industry. .
Header bidding is a service that allows sellers, such as news publishers, to offer their online ad space to multiple buyers at the same time, instead of receiving bids one by one. As a result, buyers, or advertisers, compete with each other for inventory, and publishers can compare offers from multiple buyers at the same time. This competition between buyers can make auctions more competitive.
As part of its investigation, the CMA will consider whether a deal between Google and Meta, whose code name internally was “Jedi Blue,” has broken the law. The CMA is also examining Google’s conduct in relation to header offer services more extensively to see if the company has abused a dominant position and gained an unfair advantage over competitors trying to provide a similar service.
The European Commission (EC) has launched its own investigation into the agreement between Google and Meta and the agreement is also the subject of a complaint by the State of Texas (and other American states) currently in US courts. The CMA will seek to work closely with the EC during the development of the independent investigations.
“We are concerned that Google may have partnered with Meta to thwart competitors that provide major online display advertising services to publishers,” said Andrea Coscelli, chief executive of CMA.
“If a company has a stranglehold on a certain area, it can make it difficult for start-ups and small businesses to enter the market and ultimately reduce customer choice.”
The government recently proposed powers for the Digital Markets Unit which will sit within the CMA. This unit will ultimately be responsible for deciding which Big Tech companies face legally enforceable codes of conduct to govern their behavior.
Coscelli, who will leave the role this summerhe added: “We will not hesitate to examine the behavior of large technology companies as we await the powers for the Digital Markets Unit, working closely with global regulators to achieve the best possible results.”
This case follows CMA’s market study of online platforms and digital advertising, which considered Google’s position in relation to header bidding services and the broader AdTech stack of which header bidding services are a part.
The CMA says it has also received complaints relating to Google’s conduct in this area.
Meanwhile, the CMA is pursuing its investigation into Apple’s App Store, Meta’s use of data and The mobile ecosystems of Apple and Google with respect to competition problems.
Probe AdTech in the UK on Meta, owner of Google and Facebook
Source link Probe AdTech in the UK on Meta, owner of Google and Facebook