Canada antitrust agency advances probe in Amazon pricing policy

Canada antitrust agency advances probe in Amazon pricing policy

The Canadian Competition Bureau has expanded its investigation into Amazon's pricing practices, following the company's imposition of surcharges on Canadian advertisers [1]. This move comes amidst the backdrop of the cancellation of Canada's digital services tax (DST) by Prime Minister Justin Trudeau.

Amazon began charging Canadian advertisers a 3-per-cent fee for ads served and purchased in Canada on October 1, 2024, in anticipation of the DST. However, the tax was rescinded in June 2025, prompting questions about the continuation of these surcharges. The Competition Bureau's probe seeks to determine if these fees are in line with market competition standards.

The Canadian Federation of Independent Business (CFIB) has criticized the surcharges, stating that they amount to an unfair penalty for Canadian businesses. The CFIB's vice-president, Jasmin Guénette, emphasized that the surcharges should be discontinued since the tax they were meant to cover has been rescinded [1].

Despite the cancellation of the DST, both Amazon and Google have maintained their surcharges, citing a lack of clear guidance from the government on the future of these fees. The Competition Bureau's investigation aims to provide clarity and ensure that Amazon's pricing practices do not unfairly disadvantage Canadian businesses.

The investigation is part of a broader trend of antitrust scrutiny of major tech companies. As of July 2, 2025, the Competition Bureau has not provided a timeline for the completion of its probe or any potential enforcement actions.

References:
[1] The Globe and Mail. (2025, June 30). Tech companies' surcharges on Canadian advertisers remain in place. Retrieved from https://www.theglobeandmail.com/business/economy/article-tech-companies-surcharges-on-canadian-advertisers-remain-in-place/