Competition Bureau Sues Google for Anti-Competitive Conduct in Online Advertising in Canada
November 28, 2024
The Competition Bureau of Canada has filed a lawsuit against Google, alleging that the tech giant has engaged in anti-competitive conduct in the online advertising market in Canada.
The Bureau alleges that Google has abused its dominant market position by:
- Favoring its own advertising services over those of its competitors. Google allegedly uses its search engine and other platforms to promote its own advertising services, while making it more difficult for competitors to gain visibility.
- Preventing advertisers from using competing advertising platforms. Google allegedly uses contractual terms and technical barriers to make it difficult for advertisers to use advertising platforms offered by competing companies.
- Restricting access to advertising data. Google allegedly collects vast amounts of data about online advertising, but restricts other companies from accessing this data, which gives Google an unfair advantage.
The Competition Bureau is seeking a number of remedies, including:
- Breaking up Google’s advertising business. The Bureau could recommend that Google be split into separate entities, one that handles search and another that handles advertising.
- Imposing fines. The Bureau could recommend that Google be fined for its alleged anti-competitive conduct.
- Changing Google’s business practices. The Bureau could recommend that Google change its business practices to make the online advertising market more competitive.
The lawsuit is the latest in a series of actions taken by competition authorities around the world against Google. In 2017, the European Union fined Google €2.4 billion for abusing its dominant market position in online search. In 2018, the United States Department of Justice opened an investigation into Google’s advertising practices.
The Competition Bureau’s lawsuit is a significant development in the ongoing investigation into Google’s dominance in the online advertising market. The outcome of the lawsuit could have a major impact on the Canadian digital advertising industry.
Additional Information
- The Competition Bureau is an independent law enforcement agency that investigates anti-competitive conduct in Canada.
- Online advertising is a major revenue stream for Google. In 2022, Google generated over $160 billion in advertising revenue.
- The online advertising market in Canada is estimated to be worth over $6 billion per year.
- Google has a dominant market share in the Canadian online advertising market. In 2022, Google controlled over 90% of the market.
Competition Bureau sues Google for anti-competitive conduct in online advertising in Canada
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