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Canada’s antitrust watchdog is taking action against Google over an alleged monopoly in its online advertising operations.
The Competition Bureau said in a press release (Nov. 28) that the big tech giant constructed a system that makes it difficult for smaller operators to enter and compete in the market, with favorable treatment given to its own range of advertising tools.
In Canada, Google’s ad network infrastructure includes DoubleClick for Publishers, AdX, Display & Video 360, and Google Ads.
The Bureau has called upon the Competition Tribunal – a body independent of the main legal system – to address the matter by instructing Google to divest two of its core tools and pay a fine of up to 3% of the multinational’s global revenue “to promote compliance” with Canada’s competition regulations.
“Through a series of calculated decisions, taken over the course of multiple years, Google has excluded competitors and entrenched itself at the center of online advertising,” the Competition Bureau detailed in its communication notice announcing the suit on Thursday.
The law enforcement agency further alleged Google’s “near-total control” of the ad-tech space had been an outcome of “premeditated design and conduct”, rather than a matter of performance.
Last week, the equivalent organization in the United Kingdom was urged to utilize newly invested powers to launch a probe into the alleged duopoly of Apple and Google in the mobile browser market.
Google will contest the findings of the Competition Bureau
The U.S. tech giant now has 45 days to lodge its response with the tribunal, which will include a robust defense of its position.
Dan Taylor, Google’s VP of Global Advertising said in a counter statement the action is misguided and “ignores the intense competition where ad buyers and sellers have plenty of choice and we look forward to making our case in court”.
“Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers,” added Taylor.
Image credit: Via Midjourney
