Google ‘predatory’ advertising practices probe expanded by Canada’s antitrust watchdog
Canada’s antitrust watchdog widened its investigation into whether Google’s online advertising business is engaging in predatory pricing.
As part of the Competition Bureau’s probe — which expands on an investigation that initially began in 2020 — the law enforcement agency obtained an order from the Federal Court of Canada requiring Google to producing relevant records and written information, according to The Wall Street Journal.
The Competition Bureau was issued its first court order related to their investigation into Google’s conduct in the online-display-advertising market in October 2021, which sought to determine whether the Alphabet subsidiary was “impeding the success of competitors” and surging prices as a result, The Journal reported.
The bureau said Thursday that it’s also now examining whether Google is using its market power across display-advertising-technology services to harm competition.
In addition, the Competition Bureau is looking into Google’s potential predatory pricing, according to The Journal, which is a strategy often deployed to weaken rivals by establishing extremely low prices.
“The investigation is ongoing and there is no conclusion of wrongdoing at this time,” the bureau told The Journal.
A Google spokesperson argued in a statement to The Post that “the advertising technology industry is highly competitive and constantly evolving, which has lowered costs and expanded choices for consumers.”
“We will continue to engage constructively with the Canadian Competition Bureau and demonstrate the benefits of our products to Canadian businesses and consumers,” the spokesperson added. “Canadian businesses choose to use our advertising products because they’re effective and reliable at helping them reach their customers and grow.”
The Competition Bureau’s investigation adds to the scrutiny Google is facing from other organizations around the globe.
On Wednesday, the Mountain View, Calif.-based tech behemoth was hit with a $2.3 billion lawsuit by media giant Axel Springer and 31 other publishers, alleging that they suffered heavy losses due to the search giant’s practices in digital advertising.
The move by the group — which include publishers in Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, Hungary, Luxembourg, the Netherlands, Norway, Poland, Spain and Sweden — comes as Europe’s antitrust regulators crack down on Google’s ad tech business.
“The media companies involved have incurred losses due to a less competitive market, which is a direct result of Google’s misconduct,” the media firms’ counsel at Geradin Partners and Stek Lawyers said in a statement obtained by The Post.
“Crucially, these funds could have been reinvested into strengthening the European media landscape.”
They cited the French competition authority’s nearly $240 million fine against Google on its ad tech business in 2021 as well as the European Commission’s charges last year to buttress their group claim.
Google said that it will oppose the claims “vigorously,” and called the lawsuit “speculative and opportunistic.”
The Sundar Pichai-led firm also similarly said last year that it disagreed with EU antitrust charges against its ad tech business where it is involved in both the buy-side as well as the sell-side of the ad-tech business.
The European Union — which has implemented tougher regulations on Big Tech firms than American officials with the Digital Service Act, which took effect earlier this month — also slapped Google with a $2.7 billion antitrust fine in 2017 for market abuse related to its shopping service.
In the year’s since, Google has tried to skirt the fine, but Europe’s top court struck down the company’s last-ditch effort to avoid the payment last month, dealing a potential blow to the world’s most popular internet search engine.
All the while, Google has been involved in a “historic” in-court battle with the US Justice Department, which alleged the company wielding illegal “monopoly power” that has “harmed consumers.”
Throughout the trial, which kicked off last month, the DOJ has made an effort to expose Google’s shady tactics and anticompetitive practices.
US District Judge Amit Mehta is expected to render a decision in May.
