Regulators must curb Google's ad tech dominance: ACCC

Australian Competition and Consumer Commission (ACCC) Chair Rod Sims has detailed the findings of the Commission’s Digital Advertising Services Inquiry during a Global Competition Review webinar.

During the webinar, Sims said a competitive ad tech supply chain is important for Australian advertisers, publishers and ultimately, consumers.

The recent inquiry concluded that competition for ad tech services is ineffective and dominated by Google. It recommended the ACCC be given new powers to address these competition concerns, which revolve around Google’s vertical integration and dominance in the supply chain.

“[This dominance], as well as its strong position in related services such as YouTube, has allowed it to engage in leveraging and self-preferencing conduct, which have likely interfered with the competitive process,” he said.

“Over time, this conduct has lessened competition for ad tech services and allowed Google to establish and entrench its dominant position in the ad tech supply chain. This vertical integration has also created conflicts of interest, which can harm advertisers and publishers.”

Because Google has little incentive to manage these conflicts of interest, competition regulators around the world are in the process of developing regulatory interventions to address these issues, Sims said.

“Our recommendations, and in particular, the need to introduce sector specific rules, are broadly consistent with these proposals which are being put forward overseas.”

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