Canada's antitrust watchdog seeks to break up Google's ad-tech business
Canada's Competition Bureau has sued tech giant Google, accusing it of abusing its dominant position in the online advertising space. The bureau alleges that Google has leveraged its power to "maintain and entrench its market power." The lawsuit particularly accuses Google of favoring its own tools for accessing online ad inventory, and financially undercutting rival platforms on some transactions.
Google's control over customer transactions under scrutiny
The Competition Bureau also claims that Google has maintained control over how its customers engage with competing ad tech companies. As part of its proposed remedies, the bureau wants Google to be forced to divest two of its ad tech tools and pay a penalty for its alleged misconduct. The case will now be heard by the Competition Tribunal, a quasi-judicial body dealing with non-compliance issues of the Competition Act.
Tribunal asked to order Google's divestment from ad tech tools
The bureau has asked the tribunal to direct Google to divest its publisher ad server, DoubleClick for Publishers, and its ad exchange, AdX. It estimates Google holds a whopping market share across different segments of online advertising — 90% in publisher ad servers, 70% in advertiser networks, 60% in demand-side platforms, and 50% in ad exchanges. This monopoly is said to have dissuaded competition, suppressed innovation, raised advertising costs, and lowered publisher revenues.
Google's response to the lawsuit
Responding to the lawsuit, Google told Reuters that the complaint "ignores the intense competition where ad buyers and sellers have plenty of choice." The company is gearing up to defend its case in court. Separately, Dan Taylor, Vice-President of Global Ads at Google, said that their advertising technology tools help websites and apps fund their content and allow businesses of all sizes to reach new customers effectively.
