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Google Faces More Problems: Canada Sues Tech Giant for Monopolizing Online Ad

By Consultants Review Team Friday, 29 November 2024

Alphabet-owned Google is facing legal action from Canada's Competition Bureau, which claims the internet giant is adopting anti-competitive tactics in the online advertising market. The Canadian antitrust agency has applied to the Competition Tribunal for an order compelling Google to sell two of its ad tech products, according to a Report.

In order to encourage adherence to Canada's competition regulations, the Competition Bureau is also pursuing a penalty against Google, according to the report.

In order to determine if the search engine behemoth had participated in actions that undermined competition in the online advertising sector, the Canadian antitrust watchdog launched an investigation in 2020. Earlier this year, the investigation was extended to encompass Google's advertising technology services.

According to the report, Google is the biggest supplier of web advertising across the ad tech stack in Canada. It has exploited its position of dominance by engaging in actions meant to preserve and strengthen its market dominance.

Google stated that "we look forward to making our case in court" and that the complaint disregards the fierce competition where ad buyers and sellers have many options.

"Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers," said Google's vice president of global ads, Dan Taylor.

Final arguments in Google's advertising monopoly case are heard by the judge. The action follows an attempt by the US Justice Department to demonstrate that Google has monopolized the advertiser ad networks and publisher ad servers sectors.

Google contends that the online ad industry is very competitive and that the US government is ignoring the company's reasonable commercial decisions. Additionally, according to the IT giant, the US government has neglected the fierce competition and only paid attention to a small portion of the online market.

European publishers rejected the search giant's offer to sell the ad exchange earlier this year in order to halt an EU antitrust inquiry, seeing it as insufficient.

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