The Competition and Markets Authority (CMA) and the European Commission have launched parallel probes into whether Google and Meta collectively restricted “header bidding services”.
According to the marketing authority, header bidding is a service that allows sellers, such as new publishers, to offer their online advertising space to multiple buyers at the same time, rather than receiving offers one by one.
As a result, multiple buyers or advertisers can bid against each other for ad space and publishers can simultaneously compare these bids from potential buyers.
The CMA is due to investigate whether an agreement between Google and Meta, codenamed ‘Jedi Blue’, broke the law.
It is believed by the regulators that the companies’ agreement restricted or prevented the uptake of heading bidding services, and that Google “abused” its dominant position to affect the ability of competitors looking to provide a similar service.
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“We’re concerned that Google may have teamed up with Meta to put obstacles in the way of competitors who provide important online display advertising services to publishers,” CMA chief executive Andrea Coscelli said.
“If one company has a stranglehold over a certain area, it can make it hard for start-ups and smaller businesses to break into the market – and may ultimately reduce customer choice.”
“We will not shy away from scrutinising the behaviour of big tech firms while we await powers for the Digital Markets Unit, working closely with global regulators to get the best outcomes possible.”
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