Adding to the pile of cases against Google, Canada’s competition watchdog is suing Google for being responsible of the discrimination of the competition within the digital advertising market. The Canadian Competition Bureau claims that the search giant has been using its dominance to injure competitors and interfere with the market for internet ads.
In particular, accusations of monopoly tactics have been made
The Competition Bureau’s allegations are that Google unfairly exercises overbearing influence over strategic parts of the digital advertising supply chain fashioning them in a way that unreasonably inhibits the scope of competition in the Canadian market and the freedom of other rivals. The case mostly concentrates on Google’s stewardship of its advertising services, notably in what could be termed as acting as a supply and demand broker of Web space for advertisements.
The Bureau believes that with this kind of power, Google has been able to influence both the advertisers and the publishers to force them to use its advertising products thereby making it difficult for another market player to have a fair shot at the market. This, it has been alleged in this lawsuit, exposes customers to various risks and hinders development within the advertising business.
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The suit is the end product of a three-year probe of Google’s conduct in the digital advertising space in Canada by the Competition Bureau. The Bureau has been investigating Google’s advertising policies for over two years to determine if the company’s dominance over essential advertising technologies and interfaces violates Canadian competition laws.
Canada’s antitrust authority also observes that Google dominates the market for digital advertising, it controls a large market share of both search ads and display advertising networks. This dominance, the Bureau says, has enabled Google to unreasonably restrict competition by controlling access to what it considers effective advertising tools and preventing advertisers from accessing differentiated services.
Google Denies the Allegations
In response to the lawsuit, Google has strongly denied any wrongdoing. A spokesperson for the company said, “Google’s ad services provide useful tools for advertisers and publishers, improve the overall match between supply and demand, and support free, high-quality content on the internet.” The company further said it is committed to fair competition and open markets.
Google’s defense has claimed that the suit misrepresents its business practices and the nature of competitiveness in digital advertising. Google says this about its platforms: Both businesses and consumers benefit, since there are a range of choices, and also because there is an ever-open opportunity for advertisers to get in front of customers.
A Growing Global Scrutiny
This legal case therefore falls among those that Google is experiencing all over the world with regard to its operations. The company has already been involved in antitrust matters in the US and the Europe where regulators have voiced similar worries on the company’s advertageous control and possible anti-competitiveness.
The Canadian lawsuit is part of a bigger picture of regulators looking uncomfortably at big tech companies especially in the digital advertising space for practices that maybe anticompetitive. Since governments across the globe are trying to reign in the power of various tech firms, this case may well become a blueprint of how other countries approach the issue of antitrust in the technology sector.
A Brief Look at the Future of Google and Canada’s Competition Lawsuit
However, as the case continues to be heard in the Canadian courts it threatens not only Google, but could potentially open the flood gates for other digital advertising players. If the court decides in favor of the Competition Bureau, Google may face large fines, and the corporation may be forced to alter its advertising operations in Canada .
The case is likely to drag on for several months or even years; however, it resonates growth in global scrutiny placed on tech firms to check their business conduct against antitrust laws. With legal changes being made and communicated constantly in the future of digital advertising and the future position of companies, such as Google, remain a mystery.
