Competition Bureau Canada has filed a lawsuit against Google – alleging that the tech giant has exploited its market dominance and employed anti-competitive tactics. The lawsuit specifically focuses on Google’s practices in the online web advertising space.
The market competition watchdog issued a statement on Thursday, accusing Google of utilizing its ad tech tools to maintain a dominant position in the market. Google allegedly leveraged this position to favor its own tools, often at the expense of competitors by blocking them. According to reports, Google’s market share is substantial, with an estimated 90% share in publisher ad servers, 70% in advertiser networks, 60% in demand-side platforms, and approximately 50% in ad exchanges.
Google’s market dominance has had far-reaching consequences, according to CNBC. The tech giant’s supremacy has stifled competition from rival companies, hindered innovation, and resulted in reduced revenue for publishers. Furthermore, Google’s dominance has led to inflated advertising costs.
Matthew Boswell, Commissioner of Competition, condemned Google’s actions, stating “Google has abused its dominant position in online advertising in Canada by engaging in conduct that locks market participants into using its own ad tech tools, excluding competitors, and distorting the competitive process.”
The Competition Bureau has taken a significant step by filing an application with the Competition Tribunal, seeking a court order that would require Google to divest two of its ad tech tools. Additionally, the Bureau is seeking a penalty to ensure Google’s compliance with Canada’s competition laws.
In response to the allegations, Google countered that the complaints overlook the highly competitive landscape of the advertising industry, where buyers and sellers have numerous options. Dan Taylor, Vice President of Global Advertising, emphasized that Google’s advertising technology facilitates the monetization of content for websites and apps, while enabling businesses to reach a wider audience. Taylor expressed confidence in Google’s position, stating that the company looks forward to presenting its case in court.
The case against Google comes at a time when the company is facing increased regulatory scrutiny. Just last week, the US Justice Department demanded that Google sell its web browser Chrome, citing concerns that the company’s dominance in online search could be perpetuated.
Google is facing similar challenges in other regions, including the US and the European Union. Additionally, Russia has imposed a fine on Google for failing to remove content deemed illegal under Russian regulations, further highlighting the company’s growing regulatory woes.
India’s competition watchdog, the Competition Commission of India (CCI), has launched an investigation into Google’s policies regarding real-money games on its platform. The probe was prompted by a complaint from WinZO, an online gaming platform, which alleged that Google’s policies are discriminatory and restrictive.
In September, Google attempted to settle an antitrust investigation in the European Union by offering to divest its ad exchange platform, AdX. However, the proposal was met with rejection from EU publishers, who deemed it insufficient to address their concerns – upholding the record-breaking €2.42 billion ($2.7 billion) fine imposed on Alphabet, Google’s parent company.
