The Competition Bureau in Canada has initiated legal proceedings against Google, alleging that the tech giant has misused its dominant position in the online advertising market to the detriment of competition and Canadian businesses. The bureau demands Google to divest two of its advertising tools and pay penalties for anti-competitive practices.
In its case targeting how Google buys and sells online advertising in Canada, the Competition Bureau says the company "has abused its dominant position." But those who study the tech giant say reducing its market influence won't be easy. Google logos are displayed on devices during an online search. In its case targeting how Google buys and sells online advertising in Canada, the Competition Bureau says the company 'has abused its dominant position.
Canada's antitrust watchdog has built a strong case against Google's advertising technology by learning from recent U.S. legal actions, said Jennifer Quaid, an associate professor at the University of Ottawa's law faculty. "Each one of these decisions talks about several things in common — the acquisition of a monopoly through a series of ownership acquisitions over the last 15 years and that it has built protective moats around the dominant market power or monopolies that it has acquired," he said.
The bureau also found that Google dictated terms to publisher customers about how they could transact with rival ad tech tools. "We've had a raft of changes to the Competition Act that would have never been possible five, 10 years ago," Winseck, of Carleton University, said. She pointed to Google's vast data holdings as the fundamental challenge — one that may lie beyond the reach of traditional competition law. "What's valuable is the information they gather and store and are able to constantly repackage and make into new revenue streams.... But I don't know that any antitrust agency has a way of dealing with that directly."
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