A Competition Authority (PCA) investigation into Google for abuse of a dominant position has moved to the European Commission after the latter broadened the scope of its own investigation into the company, according to a statement.

"Following a complaint, after questioning the main economic agents present in these markets and a previous analysis of the markets, the PCA decided, on May 17, 2022, to open an administrative proceeding against Google for the practice of abuse of a dominant position. This process was, until now, covered by judicial secrecy," revealed AdC.

According to the regulator, "at stake are behaviors of Google that indicate a possible self-favoring ('self-preferencing') of this company at various levels of the value chain associated with the sale of advertising space 'online.

The Competition Bureau said that, "In particular, the issue at stake is whether Google has used information about online ad auctions, to which competitors did not have access, to influence the outcome of those auctions in its favor and potentially constrain the development of competing auction technologies, as well as other possible competitively-restrictive behavior in its relationship with publishers.

In the meantime, "after the investigation carried out by the PCA and the consequent opening of the proceedings against Google, the European Commission, on July 27, 2022, informed the PCA that, given the scope and impact of the matter in question, it intended to extend the scope of its own investigation into Google to also include the practices and markets under investigation by the PCA in Portugal," he said.

According to the regulator, "under Regulation 1/2003, the EC may decide to extend an investigation initiated by a national authority to the whole Community area.

Under the rules governing the operation of the ECN [European Competition Network], the initiation of proceedings by the European Commission deprives national competition authorities of the power to continue an investigation into the same matter" and therefore "the PCA has closed the investigation into the case on September 6, 2022, and it will now be conducted by the European Commission.

"In the same note, the PCA said that, "given the serious concerns identified in its investigation," the regulator "reinforced to the European Commission the importance of the Portuguese markets being subject to investigation" and "also made available to the Commission all the information gathered during its investigation."

"The purpose of AdC is that the research it has developed and the information provided by 'stakeholders' in the national market contribute to defend competition in digital advertising markets and consumer welfare in Portugal," he concluded. (Notícias ao Minuto)