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Google in hot seat,
Canada's Bureau steps in,
Ad tech dominance questioned.
Canada's Competition Bureau sues Google over alleged anti-competitive conduct, calls for DFP, AdX sale
The Competition Bureau of Canada is taking legal action against Google, lodging an application with the country's Competition Tribunal for an order that would require the tech monopolist to sell two of its ad tech tools and pay a penalty equal to three times the value of the benefit it derived from alleged anti-competitive practices.
If that value cannot be determined, The Bureau has demanded Google cough up three per cent of its worldwide gross revenues - equal to US$9.2 billion.
The two tools in question are Google's publisher ad server DoubleClick for Publishers, and its ad exchange AdX, which along with Display & Video 360 and Google Ads, ensure the conglomerate has "near total control" of the publishing tech stack, per The Bureau.
An investigation by The Bureau found Google to have abused its dominant position as the largest provider across the ad tech stack for web advertising, by engaging in conduct intended to ensure that it would maintain and entrench its market power.
It estimates Google has a market share of 90 per cent in publisher ad servers, 70 per cent in advertiser networks, 60 per cent in demand-side platforms and 50 per cent in ad exchanges.
"No other single ad tech provider has Google’s scale or reach across the ad tech stack, with over 200 billion Canadian web ad transactions flowing through Google’s ad tech tools in 2022," The Bureau said in its findings.
The Bureau alleges that Google's conduct locks market participants into using its own ad tech tools, prevents rivals from being able to compete on the merits of their offerings, and distorts the competitive process. The Bureau found that Google has unlawfully tied its various ad tech tools together to maintain its market dominance and leveraged its position across these ad tech tools to distort auction dynamics.
"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. 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," said Commissioner of Competition, Matthew Boswell.
The Bureau's application with the Competition Tribunal seeks an order that requires Google to sell two of its ad tech tools, directs Google to pay a penalty to promote compliance with the Competition Act, and prohibits Google from continuing to engage in anti-competitive practices. The final decision in this matter rests with the Competition Tribunal.
Mi3 has contacted Google for a statement.
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