Canada’s antitrust regulator pushes Google for ad-tech breakup
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Canada is joining in the antitrust enforcement wave against Google (NASDAQ:GOOG) (NASDAQ:GOOGL), suing the tech giant over anticompetitive conduct in the advertising technology market.
Canada’s Competition Bureau has filed suit with the Competition Tribunal seeking remedies including forcing Google (GOOG) (GOOGL) to sell two of its ad-tech tools, as well as paying a penalty and restricting further anticompetitive practices.
“The Competition Bureau conducted an extensive investigation that found that 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,” said Commissioner of Competition Matthew Boswell.
“Google’s conduct has prevented rivals from being able to compete on the merits of what they have to offer, to the detriment of Canadian advertisers, publishers and consumers. We are taking our case to the Tribunal to stop this conduct and its harmful effects in Canada.”
Specifically, the watchdog said it found Google had “unlawfully tied its various ad tech tools together to maintain its market dominance” and leveraged its position across its tools to “distort auction dynamics” by “giving its own tools preferential access to ad inventory, taking negative margins in certain circumstances to disadvantage rivals, and dictating the terms on which its own publisher customers could transact with rival ad tech tools.”
Google has argued that there is intense competition and choice in the market for ad buyers and sellers, and that its integrated ad-tech offerings are “cheaper, safer and more effective” for customers.
During the company’s Justice Dept. trial over ad-tech competition, Google argued that the business is “intensively competitive” with rivals including Facebook, Amazon and Microsoft.
Alphabet stock was down fractionally on Friday’s short trading morning: (GOOG) -0.6%, (GOOGL) -0.6%.