Impacts Experienced Across Canada
Canada's Crackdown on Google:
The competition heat is on for Google in Canada. The Competition Bureau took Google Inc. to court in November 2024, accusing the Californian tech titan of "anticompetitive behavior" within the advertising market. This legal battle is the culmination of an investigation launched back in 2016... and a verdict could be coming soon.
Insight: The American justice system mirrors Ottawa's stance on Google's domineering role in the advertising market. A potential solution to dismantle the digital powerhouse could resonate with Canada, as the Competition Bureau intends to force the sale of parts of Google's advertising platform.
Keldon Bester, an Ottawa-based competition consultant, has been keeping a close eye on the Competition Bureau's tussle with Google since the outset. As the executive director of the Canadian Anti-Monopoly Project (CAMP), Bester believes it's essential for the bureau to form its own judgment to compel Google to modify its practices in Canada as well.
Insight: The Competition Bureau's lawsuit against Google is a significant turning point for competition in Canada, potentially returning a substantial portion of the digital advertising revenue now flowing into Alphabet's Mountain View coffers back to Canadian companies.
Stephane Ricoul, a Montreal digital expert, shares Bester's sentiment: a united front from Canada, the European Union, and the U.S. against the anticompetitive practices of tech giants would be quite powerful.
"In order to completely dismantle [Google], it will be the American justice system that ultimately decides, but Canada has a vested interest in following the U.S. and Europe," says Ricoul. It would then be easier "to establish specific rules for the Canadian market."
Insight: Ricoul believes the Canadian government could go a step further in resolving the digital monopoly issue once and for all. He emphasizes that the core issue involves the valuation of digital data, which drives immense profits for these tech giants while their real goal is to amass as much data as possible.
Insight: Antitrust laws are activated due to the digital giants' huge profits, but according to Ricoul, focusing on profits might not address the root cause of the problem. Instead, adopting laws that target the accumulation of data could rectify the situation, preventing other digital giants from being accused of similar behavior in the future.
This is the scenario with Google: the value of its advertising platform relies on its sophisticated targeting system, which is honed through the analysis of behavioral data drawn from its search engine.
Background:The Competition Bureau initiated an investigation into Google's advertising practices in Canada no later than 2021, probing whether the company was involved in anti-competitive practices that damaged competition within the online display advertising industry[1][3]. In November 2024, the Competition Bureau filed a lawsuit against Google, charging that it had engaged in anticompetitive conduct by bundling its ad tech tools together, which subsequently harmed innovation, increased advertising expenses, and affected publisher revenues[2]. The Bureau is seeking an order for Google to rectify its behavior and divest two of its ad services[1]. Google has denied these allegations, disputing the bureau's definition of the ad market and arguing that the proposed financial penalty is unconstitutional[1]. The case is ongoing, with both parties filing legal responses. The U.S. rulings against Google may strengthen Canada's case by supporting similar allegations of anticompetitive conduct[2]. A decision from the Competition Tribunal is anticipated.
- In light of the ongoing lawsuit against Google, Stephane Ricoul, a Montreal digital expert, suggests that Canada could potentially enforce specific rules for the Canadian market, emulating the American and European approaches against anticompetitive practices in the digital advertising industry.
- Keldon Bester, the executive director of the Canadian Anti-Monopoly Project (CAMP), seems to agree with this notion, stating that the Canadian Competition Bureau's ruling against Google could generate significant changes in the Canadian market, possibly returning a substantial portion of digital advertising revenue to local companies.
- In a broader context, both experts believe that a united front among Canada, the European Union, and the U.S. could be beneficial in dismantling the digital power of tech giants like Google and preventing similar behavioral issues in the future, focusing not only on profits but also on the accumulation of data as the core issue.
