Canada’s Competition Bureau Sues Google Over Abuse of Dominant Position in Online Advertising
The Canadian Competition Bureau has filed a lawsuit against Google, alleging that the tech giant has abused its dominant position in the online advertising market. The move comes after a thorough investigation, which found that Google has engaged in anti-competitive conduct by tying several of its advertising tools together and using its position to distort auction dynamics.
Anti-Competitive Conduct
The Competition Bureau claims that Google’s conduct has allowed it to entrench its dominance, prevent rivals from competing, inhibit innovation, and reduce publishers’ revenues. The regulator is seeking to remedy the conduct for the benefit of Canadians and has demanded that Google sell two of its ad tools, the DFP server and the AdX exchange, and pay a fine three times the value of the benefit gained, or 3% of its global gross income.
Global Antitrust Issues
The Canadian lawsuit is not the only antitrust issue facing Google. In August, a US court ruled that Google has a monopoly in the search market, violating US antitrust laws. The ruling came after the government filed a case in 2020, alleging that Google controlled the general search market by creating strong barriers to entry and a feedback loop that maintained its dominance.
Last month, the US Justice Department proposed changing Google’s structure to deprive it of the ability to use the Chrome web browser, the Play app store, and the Android operating system as advantages for the Google search engine to the detriment of competitors. Google has called the proposal "radical" and "harmful."
Conclusion
The Canadian Competition Bureau’s lawsuit against Google is a significant step towards promoting fair competition in the online advertising market. The regulator’s allegations of anti-competitive conduct highlight the need for Google to address its dominant position and ensure that smaller players have a fair chance to compete. The case serves as a reminder of the importance of antitrust regulations in promoting innovation, reducing costs, and benefiting consumers.
Frequently Asked Questions
Q: What is the Canadian Competition Bureau’s case against Google?
A: The Canadian Competition Bureau is suing Google for anti-competitive conduct in online advertising technology services in Canada.
Q: What are the allegations against Google?
A: The allegations include that Google has tied several of its advertising tools together, used its position to distort auction dynamics, and prevented rivals from competing, inhibiting innovation and reducing publishers’ revenues.
Q: What is the Canadian Competition Bureau seeking from Google?
A: The regulator is seeking to remedy the conduct for the benefit of Canadians, including selling two of Google’s ad tools and paying a fine three times the value of the benefit gained or 3% of global gross income.
Q: What is the global context for this case?
A: Google faces similar antitrust issues in the US, where a court has ruled that it has a monopoly in the search market, and the US Justice Department has proposed changing its structure to deprive it of advantages in the search engine market.