Canada’s antitrust watchdog, the Competition Bureau, announced that it is expanding its investigation into Google’s online advertising practices. The probe, which has been ongoing for four years, will now focus on whether the tech giant engages in predatory pricing.
Predatory pricing is a strategy in which a company prices its products or services below cost in order to drive competitors out of the market. Once competitors have been eliminated, the company can then raise prices and reap the benefits of a monopoly or dominant market position.
Google, which dominates the online advertising market, has faced scrutiny in recent years over its practices. The company’s ad business, which includes its search and display advertising platforms, generates billions of dollars in revenue each year.
The Competition Bureau’s investigation will seek to determine whether Google’s pricing practices are anti-competitive and harm competition in the online advertising market. The watchdog will examine whether Google’s pricing strategies have resulted in higher costs for advertisers and limited choices for consumers.
In a statement, the Competition Bureau said that it is “committed to ensuring that Canadians have access to competitive markets and that businesses compete on a level playing field.” The watchdog also noted that it will work closely with international partners to gather evidence and conduct interviews as part of its investigation.
Google has denied any wrongdoing and has stated that it will cooperate with the Competition Bureau’s investigation. The company has also emphasized that it operates in a competitive and dynamic industry, with numerous players vying for market share.
The Competition Bureau’s probe into Google’s online advertising practices is just the latest in a series of antitrust investigations targeting tech companies. In recent years, regulators in the United States and Europe have also scrutinized the market power of companies like Google, Facebook, and Amazon.
As the investigation unfolds, it remains to be seen what impact the Competition Bureau’s findings could have on Google’s business practices in Canada. The outcome of the probe could also have broader implications for the online advertising industry as a whole, as regulators seek to promote competition and protect consumers from anti-competitive behavior.
