In a decisive move against monopolistic practices, Turkey’s Competition Authority (TCA) has imposed a fine of 2.6 billion Turkish Lira (approximately 75 million U.S. dollars) on Google, signalling escalating global scrutiny of the tech giant’s dominance in the advertising technology sector. The penalty underscores growing regulatory pushback against Google’s ad tech practices, which have drawn criticism for stifling competition and leveraging dominance unfairly.

The investigation, which began in May 2023, focused on Google’s overwhelming influence in the ad tech ecosystem, specifically targeting the operations of its subsidiaries—Google Advertising and Marketing Ltd., Google LLC, Google International LLC, Google Ireland Limited, and parent company Alphabet Inc. The TCA’s inquiry centred on two allegations:

YouTube’s Restricted Ad Space – Google was accused of operating a “walled garden” around YouTube’s advertising inventory. This practice limited advertisers’ ability to access YouTube’s ad space through third-party demand-side platforms (DSPs), forcing them to use Google’s own DSPs instead. This exclusive arrangement raised concerns that it hindered fair competition by blocking alternative platforms from entering the market.

Self-Preference in Ad Tech – The second allegation revolved around Google’s preferential treatment of its own supply-side platform (SSP), AdX. By prioritizing AdX traffic from its DSPs and leveraging its publisher ad server to tilt outcomes in its favour, Google allegedly placed competitors at a severe disadvantage, reducing opportunities for rival SSPs to thrive in the market.

Amid the TCA’s investigation, Google attempted to alleviate concerns by offering commitments. In May 2024, it pledged to open YouTube’s advertising inventory to qualified third-party DSPs. While this agreement addressed issues specific to YouTube, the broader concerns related to Google’s dominance in the ad tech space remained unresolved.

Following months of deliberation, the TCA issued its final ruling. The authority found that Google: (1) Holds a dominant position in both the DSP and publisher ad server markets; (2) Exploited this dominance by systematically favouring AdX; and (3) Violated Turkey’s Competition Law No. 4054 by undermining market conditions.

Consequently, Google has been fined 75 million dollars and given six months to implement measures to level the playing field for third-party SSPs. Should Google fail to meet this deadline, it risks accumulating daily penalties until compliance is achieved. The company has 60 days to file an appeal in Ankara’s Administrative Courts.

This ruling is part of a broader global effort to rein in Big Tech’s monopolistic behaviour. Governments and regulatory bodies across the EU, the U.S., and other regions have been ramping up investigations into companies like Google, seeking to promote fair competition in digital markets.

The European Commission, for instance, has penalized Google for various antitrust violations over the years, including fines exceeding 8 billion euros for abuses in search and Android markets. Similarly, U.S. authorities have intensified investigations into Google’s ad practices, signalling an ongoing global effort to curb Big Tech’s dominance.