The company became a hostage of its advertising business.
Google's advertising business ran into trouble this week. First, the company received a claim for the amount of €2.1 billion. In Europe and then Canada, regulators increased their investigation, suspecting Google of abusing its dominant market position to suppress competitors.
The Canadian Competition Bureau reported that the court ordered Google to provide documents related to the advertising business. The order was the latest chapter in Canada's 4-year investigation into Google's advertising practices. Regulators intend to find out whether the company used its position in the market to harm competitors.
Of particular interest is the question of a possible underestimation of Google prices to the level at which competition becomes unprofitable. The Bureau requires additional information to determine whether Google's behavior led to higher prices for consumers or worse competition in the advertising segment.
At the moment, the investigation is ongoing, and no final conclusions about violations have been made. Google insists that its advertising business does not harm competition, but rather " helps millions of websites succeed."
At the same time, Google faced a lawsuit from more than 30 European media organizations demanding €2.1 billion for anti-competitive practices in advertising technologies. Publishers claim that Google's technology has led to a loss of revenue and higher prices for customers.
The fact that Google has come under the spotlight of regulators in different parts of the world underscores the growing concern about competition and regulation in the digital advertising market.
Google's advertising business ran into trouble this week. First, the company received a claim for the amount of €2.1 billion. In Europe and then Canada, regulators increased their investigation, suspecting Google of abusing its dominant market position to suppress competitors.
The Canadian Competition Bureau reported that the court ordered Google to provide documents related to the advertising business. The order was the latest chapter in Canada's 4-year investigation into Google's advertising practices. Regulators intend to find out whether the company used its position in the market to harm competitors.
Of particular interest is the question of a possible underestimation of Google prices to the level at which competition becomes unprofitable. The Bureau requires additional information to determine whether Google's behavior led to higher prices for consumers or worse competition in the advertising segment.
At the moment, the investigation is ongoing, and no final conclusions about violations have been made. Google insists that its advertising business does not harm competition, but rather " helps millions of websites succeed."
At the same time, Google faced a lawsuit from more than 30 European media organizations demanding €2.1 billion for anti-competitive practices in advertising technologies. Publishers claim that Google's technology has led to a loss of revenue and higher prices for customers.
The fact that Google has come under the spotlight of regulators in different parts of the world underscores the growing concern about competition and regulation in the digital advertising market.
