Google under investigation in the UK for antitrust violation. How strange …

27 May 20222 years ago babelfish

The UK competition regulator has launched an investigation into whether Google has breached the law by restricting competition in the ad technology market, the Daily Mail reported.

The Competition and Markets Authority will now assess whether the company has distorted competition and made it more difficult for rival advertising services to compete. The regulator said its investigation into the search giant owned by Alphabet will focus on brokering advertising technology, also known as the "ad tech stack."

It is a set of services that facilitate the sale of online advertising space between sellers and buyers and which, according to 2019 data, would generate revenues of 1.8 billion pounds, i.e. over 2 billion euros.

The CMA said Google holds a strong position at various levels of this space – providing a wide range of services, including platforms where advertisers can purchase online advertising space; technology that automates the sale of advertising space; and those for managing ad inventory for publishers, who decide which ads to show. The services are then repaid with commissions paid by advertisers and those who receive advertisements.
The CMA said it wants to assess whether Google is distorting competition in the industry by limiting the interoperability of some services and contractually tying some of its services together, making it more difficult for others to compete. with AD Stack google connects different services, offered in a comprehensive way, but for which competitors do not have access. This over time has allowed Google to achieve absolute dominance, and not just in the UK.

Now the CMA is examining three essential parts of the system offered by Google in which the platform seems dominant. The areas are:

Demand-side platforms (DSPs) that allow advertisers and communication agencies to purchase publishers' advertising inventory, i.e. site banners;
Ad Exchange which provides the technology to automate the sale of publisher inventory. They allow auctions in real time by connecting to multiple DSPs and collecting bids from them.
Publishers' ad servers manage publisher inventory and decide which ad to show, based on offers received from different exchanges and / or direct agreements between publishers and advertisers.

The weakening of competition in this sector could reduce the advertising revenue of publishers, who could be forced to compromise the quality of their content to cut costs or to put only what is liked by Google which, through advertising, can exercise censorship very strong of unwelcome news. A fact that objectively happens every day …

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The Google article under investigation in the UK for violating antitrust rules. How strange… it comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/google-sotto-inchiesta-nel-regno-unito-per-violazione-delle-norme-antitrust-che-strano/ on Fri, 27 May 2022 11:18:30 +0000.