The Canadian Competition Bureau has expanded its investigation into Google’s online advertising business and whether it’s engaging in predatory pricing.
Part of this probe, which began in 2020 initially, saw the Canadian antitrust watchdog gain an order from the Federal Court of Canada which requires Google to produce relevant records and written information.
The Bureau was issued its first court order related to the investigation in October 2021. It sought to determine whether Google was “impeding the success of competitors” and as a result, surging prices.
It said that it will now be examining whether the Alphabet owned company has been using its power in the market to harm competition.
Additionally, they will be investigating Google’s potential predatory pricing, a strategy that provides extremely low prices in an attempt to weaken rivals.
“The investigation is ongoing and there is no conclusion of wrongdoing at this time,” the bureau said.
A Google spokesperson said in a statement 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. Canadian businesses choose to use our advertising products because they’re effective and reliable at helping them reach their customers and grow.”
This investigation is just the latest in a spur of scrutiny Google is facing around the world.
They were recently hit with a $2.3 billion lawsuit by Axel Springer and 31 other publishers, who alleged they suffered heavy losses due to the company’s digital advertising practices.
The group includes publishers from Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, Hungary, Luxembourg, the Netherlands, Norway, Poland, Spain and Sweden.
This lawsuit comes as Europe’s antitrust regulators are cracking 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.”
“Crucially, these funds could have been reinvested into strengthening the European media landscape.”
The French competition authority’s 2021 almost $240 million fine against the company’s ad tech business was cited, as well as the European Commission’s charges from last year.
Google has said it will be opposing the claims “vigorously,” calling the lawsuit “speculative and opportunistic.”
The company said similarly last year that it disagreed with the EU antitrust charges against its ad tech business.
The EU also served Google with a $2.7 billion antitrust fine in 2017, for market abuse in regards to its shopping service.
Since then, the company has attempted to avoid the fine, however, Europe’s top court prevented its last effort last month.
At the same time, Google has been involved in a “historic” in-court battle with the US Justice Department (DOJ).
They alleged the company wielded illegal “monopoly power” that “harmed consumers.”
The trial began last month, and during, the DOJ attempted to expose the company’s tactics and anticompetitive practices. A US District Judge is expected to make a decision in May.
