Canadian regulators sue Google for anti-competitive practices in online advertising, demanding it sell its advertising tools or pay fines
On November 28, 2024, the Canadian Competition Bureau announced that it had filed a complaint with the Competition Tribunal against Google for illegally abusing its dominance in the online advertising market. The Competition Bureau is seeking to force Google to sell its advertising technology tools and pay fines.
Competition Bureau sues Google for anti-competitive conduct in online advertising in Canada - Canada.ca
Canada's antitrust watchdog sues Google alleging anti-competitive conduct in advertising | Reuters
https://www.reuters.com/technology/canadas-antitrust-watchdog-sues-google-alleging-anti-competitive-conduct-2024-11-28/
Canada's competition watchdog suing Google over advertising
https://www.thestar.com/politics/federal/canadas-competition-watchdog-sues-google-over-online-advertising/article_33a787ce-adcb-11ef-aa23-0b28f36e2247.html
Google has a strong presence not only in the search market but also in the online advertising market, and although its share has been gradually decreasing in recent years, it still maintains about 50% of the search advertising market share as of 2024. In the United States, an antitrust lawsuit regarding Google advertising has already started in September 2024.
Antitrust trial over Google ads begins, authorities criticize Google's 'trinity monopoly' - GIGAZINE
By Thomas Hawk
'The Competition Bureau is taking legal action against Google for anti-competitive conduct in online ad tech services in Canada,' the Canadian Competition Bureau said in a new statement, announcing that it will seek to force Google to sell its ad tech tools or pay a fine.
Online web advertising, which is displayed to users when they visit a website, has become a significant source of revenue for website publishers. Digital advertising space is bought and sold in automated auctions through sophisticated platforms; these platforms are known as 'ad tech tools' and the entire suite of tools used throughout the buying and selling process is collectively known as the 'ad tech stack.'
The Canadian Competition Bureau's investigation found that Google is the largest provider of the entire ad tech stack in Canada and has abused its dominant position to maintain market power. The Canadian Competition Bureau's concerns include 'illegally linking various ad tech tools together to maintain market power,' 'preferentially allocating ad inventory to its own tools,' 'selling at a loss in certain circumstances to the disadvantage of rivals,' and 'prescribing the terms under which its publishers can transact with rival ad tech tools.'
'Our allegation is that these anti-competitive conducts have entrenched its dominance, prevented rivals from competing, stifled innovation, inflated advertising costs and reduced publisher revenues,' the Canadian Competition Bureau said in a statement.
The Canadian Competition Bureau is asking the Competition Tribunal to enforce the following orders:
- Google ordered to sell two ad tech tools.
- Order Google to pay a fine to promote compliance with competition laws.
- Orders prohibiting Google from continuing its anti-competitive conduct.
'The Competition Bureau's extensive investigation has found that Google has abused its dominant position in online advertising in Canada to lock market participants into using its own ad tech tools, exclude competitors and distort the competitive process,' Competition Bureau Commissioner Matthew Boswell said in a statement. 'Google's conduct prevents competitors from competing on the merits of their own offerings, to the detriment of Canadian advertisers, publishers and consumers.'
Dan Taylor, Google's vice president of global advertising, said the Competition Bureau's allegations ignore the many choices and fierce competition that ad buyers and sellers have. 'Our ad tech tools help websites and apps fund their content and help businesses of all sizes effectively reach new customers,' he said.
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