The Competition Bureau of Canada has initiated legal action against Google, a subsidiary of Alphabet, alleging anti-competitive practices in the online advertising sector, according to a statement released on Thursday.
The Bureau has lodged an application with the Competition Tribunal, demanding that Google be compelled to divest two of its advertising technology tools. Additionally, the Bureau is seeking penalties designed to encourage adherence to Canada’s competition regulations.
In response, Google characterized the complaint as a misunderstanding of the competitive landscape, asserting that both ad buyers and sellers enjoy a wide range of options. The company expressed its eagerness to present its case in court.
“Our advertising technology tools assist websites and applications in funding their content, while allowing businesses of all sizes to effectively engage new customers,” stated Dan Taylor, Google’s Vice President of Global Ads.
The Competition Bureau’s investigation, which commenced in 2020, aimed to determine whether Google had participated in practices detrimental to fair competition within the online advertising industry. This inquiry expanded earlier this year to scrutinize Google’s advertising technology services.
According to the Bureau’s findings, Google dominates the ad tech stack in Canada and has purportedly misused its market power to consolidate and preserve its dominant position.
This development echoes recent attempts by the U.S. Justice Department, which is working to demonstrate that Google has monopolized the markets for publisher ad servers and advertiser ad networks.
Google contends that the U.S. DOJ is overlooking legitimate business decisions and claims that the online advertising market remains highly competitive. The company further argues that the government has focused on a minimal aspect of the market while neglecting the broader competitive landscape.
Closing arguments in the related U.S. case were presented on Monday.
Earlier this year, in an effort to resolve an EU antitrust inquiry, Google proposed selling its ad exchange, but the offer was dismissed by European publishers as inadequate, as reported by Reuters in September.
© Thomson Reuters 2024
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