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Canada expands Google advertising probe over predatory pricing

By Nithya Bose in Business News, posted March 3, 2024

Canada’s antitrust regulator is expanding an ongoing probe into Google's online advertising practices, focusing on whether the firm engages in predatory pricing.

This four-year investigation, launched in 2020, is being held to determine if Google has used its market dominance in display advertising technology services to unfairly edge out competitors.

The Competition Bureau of Canada said it received a recent order from the Federal Court of Canada to force Google to provide essential records and information for this inquiry.

Initially, the bureau's investigation aimed to uncover whether Google's actions were blocking the success of its rivals, potentially leading to higher prices and less choice for consumers.

The focus has now broadened to explore whether Google engages in predatory pricing, a tactic where prices are set extremely low to weaken or eliminate competition.

Despite the investigation's intensification, the Competition Bureau has not yet concluded Google has engaged in wrongdoing.

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A Google spokesman said the company's advertising products are chosen for their effectiveness.

He said: “The advertising technology industry is highly competitive and constantly evolving, which has lowered costs and expanded choices for consumers.”

Google has expressed its intention to cooperate with the bureau's investigators.

This probe expansion in Canada echoes actions taken in the US, where the Department of Justice filed a lawsuit against Google over a year ago.

The lawsuit accuses Google of abusing its dominant position in digital advertising, leading to calls for the company's breakup.

A trial in the US is scheduled to start in September.

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