The Canadian Competition Bureau has initiated legal proceedings against Google, accusing it of abusing its dominant position in the online advertising market. According to the bureau, Google used its influence to give its own advertising tools priority access to advertising resources, which created serious obstacles for competitors and effectively limited their market opportunities.
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The Canadian competition authority issued a statement announcing the completion of a detailed investigation into Google. The regulator accused the American corporation of deliberately incurring financial losses in order to damage competitors’ advertising platforms and “maintain and strengthen its market power.” In addition, the company dictated the terms to its clients under which they could work with other ad technology providers. According to the bureau, such actions distorted market dynamics, undermined fair competition and deprived Canadian advertisers and publishers of the ability to select the best deals.
Among the bureau’s demands: the forced sale of two Google advertising tools, the names of which were not disclosed. The regulator believes that their sale will help restore fair competition and reduce the company’s influence on the online advertising market. In addition, the Bureau insists on imposing a fine, which should serve as a punishment for anti-competitive behavior and set a precedent for regulating similar situations in the future.
Google has categorically denied all allegations, saying the online advertising market remains competitive and advertisers and publishers have many alternative solutions. “Our advertising technologies help websites and apps fund their content and help businesses of all sizes effectively reach new customers,” said Dan Taylor, the company’s vice president of global advertising. Google has expressed its readiness to defend its position in court.
Competition Commissioner Matthew Boswell stressed that Google’s actions not only distort the market, but also deprive Canadian advertisers and publishers of choice. “The Canadian Competition Bureau conducted a comprehensive investigation which found that Google abused its dominant position in the online advertising market in Canada by coercing market participants to use its advertising technology exclusively, excluding competitors and distorting the competitive process,” he said in a statement. .
Meanwhile, Google is facing a similar lawsuit in the US brought by the Department of Justice. The hearing concluded on Monday with the parties presenting their closing arguments. A US court decision is expected next week. These proceedings, along with the case in Canada, increase pressure on the company in key jurisdictions. If regulatory demands are met, this could weaken the corporation’s influence, open up new opportunities for competitors and increase transparency in the advertising market.