On Thursday, Canada’s Competition Bureau took legal action against Alphabet’s Google (GOOG, GOOGL), alleging anti-competitive practices within the realm of online advertising. According to Reuters, the Bureau filed an application with the Competition Tribunal, seeking a mandate that would compel Google to divest two of its ad tech tools, alongside a penalty to ensure adherence to Canada’s competition regulations.
Google responded to the allegations by asserting that the complaint overlooks the highly competitive nature of the ad market, where both buyers and sellers have ample choices. Dan Taylor, Google’s VP of Global Ads, emphasized that their tools are vital for funding digital content and helping businesses of various sizes connect with new customers.
The Bureau’s investigation, which began in 2020 and was broadened this year, determined that Google, being the leading provider across the ad tech ecosystem in Canada, has leveraged its dominant market position to maintain and strengthen its control. This follows a similar pattern seen in the U.S., where the Justice Department has been attempting to prove Google’s monopolistic practices in ad servers and networks for publishers and advertisers.
Google has countered these accusations by defending its business practices, claiming they are legitimate and that the market remains competitive. The company has criticized the U.S. government for focusing on a limited segment of the market without considering broader competition.
The timing of Canada’s lawsuit aligns with significant developments in the U.S., where closing arguments in a related case against Google were made just days prior. Furthermore, earlier in the year, Google proposed selling its advertising marketplace, AdX, to settle an antitrust investigation in the EU. The proposal was significant since it marked the first time Google had proposed selling an asset in response to an antitrust inquiry.
Despite this unprecedented step, publishers argued that merely divesting AdX would not adequately resolve the conflicts of interest inherent in Google’s extensive involvement across various levels of the ad tech supply chain. They called for a more comprehensive divestment that would better ensure competition in the market.
This Canadian lawsuit adds another layer to the global scrutiny Google faces regarding its dominance in online advertising, highlighting ongoing concerns about competition and market fairness in the digital economy.
h/t Reuters
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