Canada's Competition Bureau Takes On Google: A Battle Over Online Advertising Monopoly

Word on the StreetFriday, Nov 29, 2024 3:00 am ET

1min read

In a bold move against one of the world's tech giants, Canada's Competition Bureau announced legal action against Google, citing allegations of anti-competitive behavior in its online advertising business. The bureau has demanded that Google sell off two of its advertising technology services, pay fines, and cease its purported anti-competitive actions.

The bureau's investigation revealed that Google, as the largest provider of internet advertising technology in Canada, has been leveraging its market dominance unlawfully by bundling its advertising technology tools. This strategy allegedly stifles competition, curbs innovation, increases ad costs, and reduces revenue for publishers.

Matthew Boswell, Commissioner of Competition, stated, "Google has abused its dominant position, locking market participants into using its advertising technology tools while excluding competitors, thereby distorting the competitive process." This case has been forwarded to the Competition Tribunal, a quasi-judicial body tasked with hearing cases of Competition Act violations.

The Competition Bureau is urging the tribunal to order the divestiture of Google's publisher ad server, DoubleClick for Publishers, and its ad exchange platform, AdX. These entities are reported to command significant market shares of 90% and 50%, respectively, in their segments.

In response, Google, represented by Dan Taylor, Vice President of Global Advertising, contends that the accusations overlook the fact that ad buyers and sellers have numerous choices in a competitive market. Taylor reaffirmed Google's intent to defend against these allegations.

This legal challenge in Canada marks the latest in a series of legal hurdles for Google, including a recent U.S. Department of Justice proposal to dismantle parts of Google’s operations, suggesting measures such as selling its Chrome browser and imposing restrictions on Android to prevent biases favoring Google's search engine.

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