Canada’s antitrust watchdog is suing Google for allegedly engaging in anticompetitive behavior in its online advertising business.
The agency wants Google to sell off ad tech businesses and pay a fine.
According to the Competition Bureau, this kind of action is required since Google “illegally” linked its ad tech tools together to keep its dominant market position, according to an inquiry into the business.
Laptops 1000The Competition Tribunal, a quasi-judicial body that considers charges filed by the Competition Commissioner on violations of the Competition Act, is now in charge of the case.
The bureau requests that the tribunal mandate that Google sell its ad exchange, AdX, and publisher ad server, DoubleClick for Publishers.
Google is estimated to have a 90% market share in publisher ad servers, a 70% market share in advertiser networks, a 60% market share in demand-side platforms, and a 50% market share in ad exchanges.
According to the bureau, this dominance has stifled innovation, discouraged rival competition, increased advertising costs, and decreased publisher earnings.
In a statement, Competition Commissioner Matthew Boswell stated,
“Google has abused its dominant position in online advertising in Canada by engaging in conduct that locks market participants into using its ad tech tools, excluding competitors, and distorting the competitive process.”
Nonetheless, Google believes the online advertising market is a very competitive industry.
“The bureau’s complaint ignores the intense competition where ad buyers and sellers have plenty of choice,” said Dan Taylor, vice president of worldwide ads at Google.
According to the statement, Google plans to refute the accusation.
Having been determined to have maintained an oppressive monopoly for the past ten years, U.S. officials want a federal judge to disband Google to stop the corporation from stifling competition through its dominating search engine.
The proposed split, which was put up in a 23-page document submitted this month by the U.S. Department of Justice, calls for broad penalties that would include limits to stop Android from favoring its search engine and the sale of Google’s market-leading Chrome web browser.
