Canada's antitrust watchdog is suing Google for allegedly engaging in anticompetitive behavior in its online advertising business. The agency has asked Google to sell off two of its ad tech businesses and pay a fine.
According to the Competition Bureau, this kind of action is required since Google "illegally" linked its ad tech tools together in order to keep its dominant market position, according to an inquiry into the business.
Who is In-Charge of the Google Case?
The case is currently being heard by the Competition Tribunal, a quasi-judicial body of Canada that considers claims pertaining to violations of the Competition Act that are brought up by the Competition Commissioner.
Google Instructed to Sell its Two Services
The bureau is requesting that the tribunal mandate that Google sell two of its services:
- ad exchange, AdX, and
- publisher ad server, DoubleClick for Publishers.
Google’s Monopoly in Online Ads
Google is estimated to have a 90% market share in publisher ad servers, a 70% market share in advertiser networks, a 60% market share in demand-side platforms, and a 50% market share in ad exchanges.
Google Accused of Market Abuse
According to the bureau, Google's market dominance has stifled innovation, discouraged rival competition, increased advertising costs, and decreased publisher earnings.
In a statement, Competition Commissioner Matthew Boswell stated, "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."
Google’s Stance on the Matter
However, according to Google, the online advertising market is a fiercely competitive industry.
The bureau's complaint "ignores the intense competition where ad buyers and sellers have plenty of choice," according to a statement from Dan Taylor, Google's vice president of worldwide ads.
Google plans to defend itself against the accusation, the statement continued.
U.S. Seeks to Break Up Google
Having been determined to have maintained an oppressive monopoly for the past ten years, U.S. officials want a federal judge to disband Google in order to stop the corporation from stifling competition through its dominating search engine.
The U.S. Department of Justice suggested the split in a 23-page paper this month. The proposed penalties include limits to stop Android from favoring its own search engine and the sale of Google's market-leading Chrome web browser.
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