Google faces ad monopoly charges in Canada, probe in India over app policies

The U.S. DOJ's lawsuit was just the tip of the iceberg

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In a nutshell: Following the example step by the US Justice Department, Canada's Competition Bureau has sued Google for allegedly pursuing anti-competitive practices in the online advertising market. As if that were not enough for Google to worry about, India's competition watchdog also ordered a probe into the company's policies on real-money gaming apps on Google Play.

The Canadian Competition Bureau (CCB) has alleged that Google's online advertising business is anti-competitive. The regulator demands that the company sell off two of its ad tech services and pay a hefty fine for abusing its dominant market position. The disputed businesses include Google's publisher ad server, DoubleClick for Publishers, and its ad exchange, AdX.

Google's market share in Canada is around 90 percent in publisher ad servers, 70 percent in advertiser networks, 60 percent in demand-side platforms, and 50 percent in ad exchanges. The agency claims that the company's dominant position in some of these sectors has stymied competition, stifled innovation, and increased advertising costs for publishers, thereby reducing their margins.

"The Competition Bureau conducted an extensive investigation that found that Google has abused its dominant position in online advertising in Canada by engaging in conduct that locks market participants into using its own ad tech tools, excluding competitors, and distorting the competitive process," explained Commissioner of Competition Matthew Boswell.

He added that the company must be held responsible for "unlawfully" bundling its ad tech tools, violating the country's antitrust laws.

Google denied the CCB's allegations, claiming that the online advertising market in Canada is highly competitive. Google Vice President of Global Ads Dan Taylor claims the CCB's complaint overlooks the fact that intense competition exists and advertisers have ample choice.

Reuters notes that India also has Google's business practices under the microscope. On Thursday, the country's antitrust regulator ordered an investigation into the company's policies regarding real money gaming apps on the Play Store. The Competition Commission of India (CCI) alleged that Google has abused its dominant market position and is violating the country's Competition Act.

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India launched the probe following a complaint from the developers of a real-money gaming app called Winzo Games. It filed the case in 2022, when Google changed its policy on gambling apps, allowing fantasy sports and rummy apps like Dream11 and Rummy Circle on the Play Store while leaving out real-money gaming apps like Winzo.

Again, Google denied any wrongdoing, claiming that its policy is enforced uniformly across apps and services from all categories.

"Google has no commercial interest in refusing ad revenue unnecessarily, and its approach reflects both its decision to mitigate legal risk and its obligation to comply with the law," the company stated in a response to the CCI.