Competition Bureau broadens probe into Google's online ad practices following concerns over market dominance and potential anti-competitive behavior. (IT World Canada)
The Competition Bureau has announced a significant expansion of its investigation into Google's online advertising practices. This development marks the first major update to the inquiry since its initiation in 2020. Following a court order obtained by the competition watchdog from the Federal Courts of Appeal in the subsequent year, Google was mandated to provide records and written information related to the ongoing investigation.
Initially, the focus of the investigation primarily centered on allegations concerning Google's exploitation of its market dominance in video advertising, particularly in relation to advertiser purchasing tools. However, the Bureau has now broadened its scope to scrutinize whether Google is leveraging its market power across display advertising technology services in a manner detrimental to competition. Additionally, the investigation seeks to determine if Google is employing predatory pricing tactics.
The Competition Bureau emphasizes the necessity for further information regarding Google's advertising practices to ascertain if they are designed to undermine competition, impede the competitive process, or adversely impact competitors, potentially leading to increased prices, reduced choices, or inhibited innovation.
Unifor, Canada's largest private sector union, had previously urged updates on the investigation, expressing concerns over the adverse effects of Google's dominance on ad revenue within the Canadian news industry.
This investigation is not the first time Google has come under scrutiny for its online advertising practices. In a previous inquiry, the Competition Bureau concluded that Google had utilized anti-competitive clauses in its AdWords API terms and conditions, leading to the exclusion of competitors and negative consequences for advertisers. As a result, Google was required to eliminate these clauses and provide a commitment to the Commissioner to refrain from reintroducing them for a period of five years.
The attention on Google's advertising practices extends beyond Canada. Both European Union (EU) and U.S. lawmakers have also directed scrutiny towards the company. In 2018, the EU imposed a record-breaking antitrust fine of 4.3 billion euros (approximately US$5 billion) on Google for unfairly bolstering its search business by abusing the dominance of its Android mobile operating system.
