Competition Authority Imposes a Total Fine of 2.61 Billion TL on Google's Advertising, Google International, Google Ireland, and Alphabet Economic Entity

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Competition Authority Imposes a Total Fine of 2.61 Billion TL on Google's Advertising, Google International, Google Ireland, and Alphabet Economic Entity

The Competition Authority has concluded its investigation into Google Advertising and Marketing Ltd. Şti., Google International LLC, Google LLC, Google Ireland Limited, and Alphabet Inc.

The Authority imposed a total monetary fine of 2.61 billion TL on the economic entity consisting of Google Advertising, Google International, Google Ireland, and Alphabet.

The decision stated: "According to the Competition Authority's decision dated 18.05.2023, numbered 23-23/432-M, the investigation initiated against Google regarding whether there has been a violation of Article 6 of Law No. 4054 on the Protection of Competition in online display advertising and online advertising technology services has been concluded.

Initially, the investigation examined the allegations that Google imposed restrictions on the acquisition of its online video sharing platform 'YouTube' inventory solely through its own demand side platforms (DSPs) and prevented the verification and measurement of YouTube ads by independent service providers. In this regard, Google submitted a commitment to eliminate competitive concerns to the Authority. The commitment guarantees access of third-party DSPs, defined as Qualified YouTube DSPs, to YouTube inventory. This commitment was accepted by the Authority in its decision dated 03.05.2024, numbered 24-21/486-207, thereby concluding the investigation process regarding these allegations.

Additionally, the investigation also examined allegations that Google operated with a vertically integrated structure in the online advertising technology services supply chain, favoring its own products/services. Specifically, it was investigated whether Google directed inventory purchase requests from its own DSPs to its supply side platform (SSP) services, prioritizing its own SSP service (AdX) through its publisher ad server. In this context, the impact of Google's activities in the DSP and publisher ad server markets on competition in the SSP services market was addressed.

After completing the investigation process and discussing the case during the Authority's meeting on 12.12.2024, it was concluded that:

  • The economic entity consisting of Google Advertising and Marketing Ltd. Şti., Google International LLC, Google LLC, Google Ireland Limited, and Alphabet Inc. holds a dominant position in the demand side platform (DSP) services market.
  • Based on the dominance of Google Advertising and Marketing Ltd. Şti., Google International LLC, Google LLC, Google Ireland Limited, and Alphabet Inc. in the demand side platform (DSP) services market, no violation was found regarding the allegation of directing inventory purchase requests from its own DSPs to its supply side platform (SSP) service under Article 6 of Law No. 4054. Therefore, there was no need to impose an administrative monetary fine concerning this type of violation.
  • The economic entity consisting of Google Advertising and Marketing Ltd. Şti., Google International LLC, Google LLC, Google Ireland Limited, and Alphabet Inc. is dominant in the market for publisher ad server services.
  • It was determined that the economic entity consisting of Google Advertising and Marketing Ltd. Şti., Google International LLC, Google LLC, Google Ireland Limited, and Alphabet Inc. provided an unfair advantage to its own SSP service based on its dominance in the market for publisher ad server services, and that this self-favoring behavior hampered the activities of competitors, constituting a violation of Article 6 of Law No. 4054.

Consequently, based on Article 16, paragraph three of Law No. 4054 and Article 5, paragraph one (b), second paragraph, and third paragraph (b), and Article 6, paragraph one (a) of the Regulation on Administrative Fines for Agreements, Concerted Practices, and Abuse of Dominance, a monetary fine of 2,607,563,963.59 TL was imposed on the economic entity consisting of Google Advertising and Marketing Ltd. Şti., Google International LLC, Google LLC, Google Ireland Limited, and Alphabet Inc., calculated at a rate of ... on the gross revenue for the year 2023.

In accordance with Article 9, paragraph one of Law No. 4054, to terminate the violation specified in paragraph two and ensure effective competition in the market, Google Advertising and Marketing Ltd. Şti., Google International LLC, Google LLC, Google Ireland Limited, and Alphabet Inc. are required to provide terms no less favorable than those applied to their service to third-party supply side platforms (third-party SSPs) within six (6) months of the notification of the reasoned decision.

In the event that Google Advertising and Marketing Ltd. Şti., Google International LLC, Google LLC, Google Ireland Limited, and Alphabet Inc. fail to fully comply with the obligations specified in paragraph four within six (6) months from the notification of the reasoned decision, an administrative fine will be imposed under Article 17, paragraph one (a) of Law No. 4054, with the possibility of appeal in the Administrative Courts of Ankara within 60 days from the notification of the reasoned decision, as per decision no. 24-53/1180-509."