Competition Bureau asks Court to compel Google records disclosure in inquiry into YouTube ad sales

The Competition Bureau has asked a Federal Court to require Alphabet Inc.'s Google to produce records it needs as part of an investigation the regulator is conducting into allegations that Google is "leveraging its market power in the supply of in-stream video advertising space into adjacent advertising technology markets." According to an affidavit filed by senior competition law officer Stéphanie Guitard last week, a change in the way Google sells advertising on YouTube starting in 2016 has effectively excluded smaller third-party competitors from selling advertising inventory on YouTube. In 2017, the Bureau's affidavit continues, Google announced that it would limit the use of 'cookies' and 'pixels' on YouTube, which the Bureau defines as "tools advertisers use to measure the performance of their ad campaigns and to optimize across platforms and ad formats." The Bureau adds that it has been told by market participants that this limitation “has hindered advertisers' ability to identify and track users across the web and to obtain measurement for their ad campaign when using" anything other than Google's own ad purchasing technology, known as DV360. This in turn "further enhanced" the effects of the 2016 move toward restricting advertisers' ability to buy access to YouTube ad inventory using anything other than Google's own purchasing technology, the Bureau said. These two changes, according to Guitard's affidavit, lead the Bureau to believe that Google "possesses market power in one or more markets related to the supply of online advertising inventory in Canada and is engaging in a practice of anti-competitive acts" and has "impeded the entry or expansion of rival , with the result that competition has been substantially prevented or lessened." As such, the Bureau is asking the court to force Google to hand over records from Jan 1, 2015 onwards, as well as a limited number of records dating as far back as Jan. 1, 2013, when the Bureau says Google began contemplating the policy change. Back In July, according to the affidavit, the Competition Bureau informed Google that it would be seeking an order compelling the records disclosure. The Bureau said that after corresponding with the company over the scope of the records request, it received an indication that failed to convince it that Google will adequately fulfill the request. Guitard writes in the affidavit that the Bureau would be satisfied "as a first step" with the production of a number of records from Google that the search-giant already produced to the United States Department of Justice's antitrust division as part of a separate inquiry. "However, upon review of the records received in response to this specification, the Commissioner may seek a subsequent section 11 order against the Respondent for additional records and information necessary to advance the Inquiry," Guitard wrote. "It is to address the respondent’s stated concern with burden that the Ωommissioner is prepared to receive and review records produced to the U.S. DOJ in connection with products relevant to the Inquiry as a first step." — Reporting by Michael Lee-Murphy at mleemurphy@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca

Competition Bureau asks Court to compel Google records disclosure in inquiry into YouTube ad sales

Broadcast | October 18, 2021

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Competition Bureau asks Court to compel Google records disclosure in inquiry into YouTube ad sales

Broadcast | October 18, 2021

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