Business & Economy

Australian regulator warns of Google advertising dominance

Sydney, Australia, Sep 28 (EFE).- The competition regulator in Australia warned Tuesday that Google’s dominance in the online advertising market in the country “significantly” affects publishing companies as well as consumers.

In a report released by the Australian Competition and Consumer Commission, the regulator said Google has a dominant position in key areas of the advertising technology supply chain. It said this facilitates the buying and selling of advertising space in Internet portals and applications to promote its products to consumers.

The commission – which convinced parliament to pass a law in February to force technology companies to pay local media for the content they generate and publish on internet platforms such as Google and Facebook – has been investigating the digital services markets since last year.

It estimates that in this advertising technology supply chain, more than 90 percent of publicity (viewing an ad posted on a web page) passed, at least once, through a Google service in 2020.

The commission also said Google’s dominance in the supply chain allows it to act as both an advertising and publishing company at the same time, creating a conflict of interest that harms its competitors in both buying and selling of advertisements.

The regulator said Google’s domain is based on its access to data, such as that of consumers or some exclusive inventories and the integration of different services, and said it made key acquisitions of the DoubleClick company in 2007 and the AdMob application in 2009, as well as YouTube in 2006.

“Google used its vertically integrated position to operate its advertising technology services and has led, over time, to a less competitive ad technology industry. This conduct helped establish and secure its dominant position in the ad technology supply chain,” commission President Rod Sims said in a statement.

The regulator said at least 27 percent of advertising sold through the technology supply chain was retained by providers in 2020.

Google said its advertising technology creates 15,000 jobs and contributes AUD 2.45 billion ($ 1.79 billion) of gross added value to the Australian economy each year. EFE


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