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Problems with Canadian Competition Law: Google Comparison

12/22/2023

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Written by Ranjot Brar
JD Candidate 2025 | UCalgary Law

Competition (antitrust) law has been thrust into the forefront of tech regulation today. Recent enforcement of competition has focused on big tech and addressing the anti-competitive acts of large digital platforms. The dominance of tech giants such as Apple and Google is evident, and abuse of power is not always apparent in these data-driven markets. While the EU and US have stepped up enforcement of competition law in the digital era, Canada continues to act slowly.
 
Case comparisons between the US, Canada and the EU illustrate that competition law enforcement in Canada lacks teeth. The European Commission has charged Google on three occasions for abuse of dominance in breach of competition laws, and the resulting fines have been in the billions of dollars. In 2017, the European Commission fined Google €2.42 billion for prioritizing its comparison shopping service to the detriment of competitors following a multi-year investigation.[1] In 2018, the Commission found that Google had abused its dominant position by requiring manufacturers to pre-install Google Search and Chrome onto Android devices, and the result was a record-breaking €4.3 billion fine for stifling competitors and innovation.[2]
 
In 2011, The FTC shut down the US’ initial investigation for abuse of dominance as a search engine despite key staff members raising concerns about anti-competitive behaviour that harmed consumers and competitors in the search engine and advertising market.[3] Google is currently in the midst of the most significant antitrust trial since the 1990s Microsoft litigation in the US. They are accused of making important deals, specifically with Apple, that assisted them in maintaining dominance as a search engine while blocking competitors from gaining market share.[4] A verdict in this landmark case is expected in early 2024, and the decision will reshape how Google and antitrust enforcement operate in the US.
 
Meanwhile, Canada reviewed similar anti-competitive behaviours by Google. It closed the investigation in 2016 for lack of sufficient evidence of anti-competitive acts and lessening competition in the market.[5] A similar investigation was commenced by the Competition Bureau in 2021 but has yet to find an abuse of dominance by Google.[6] Key Canadian allies are clearly tightening antitrust enforcement of large digital platforms while Canada continues to watch from the sidelines. Whether from a lack of funding to the Competition Bureau or problematic provisions in the Competition Act[7], Canadian competition policy requires substantial reform.
 
 


[1] European Commission, “Antitrust: Commission fines Google €2.42 billion for abusing dominance as search engine by giving illegal advantage to own comparison shopping service” (27 June 2017), online: <ec.europa.eu/commission/presscorner/detail/en/IP_17_1784>.

[2] Tom Warren, “Google fined a record $5 billion by the EU for Android antitrust violations” (18 July 2018), online: <theverge.com/2018/7/18/17580694/google-android-eu-fine-antitrust>.

[3] Brody Mullins, Rolfe Winkler & Brent Kendall, “Inside the U.S. Antitrust Probe of Google” (19 March 2015), online: <wsj.com/articles/inside-the-u-s-antitrust-probe-of-google-1426793274?ns=prod/accounts-wsj>.

[4] Adi Robertson, “The antitrust trial against Google Search starts today – here’s what to expect” (12 September 2023), online: <theverge.com/2023/9/12/23868141/google-search-antitrust-trial-what-to-know>.

[5] Competition Bureau Canada, “Investigation into alleged anti-competitive conduct by Google” (19 April 2016), online: <ised-isde.canada.ca/site/competition-bureau-canada/en/how-we-foster-competition/education-and-outreach/position-statements/investigation-alleged-anti-competitive-conduct-google>.

[6] Competition Bureau Canada, “Competition Bureau obtains court order to advance an investigation of Google” (22 October 2021), online: <canada.ca/en/competition-bureau/news/2021/10/competition-bureau-obtains-court-order-to-advance-an-investigation-of-google.html>.

[7] Competition Act, RSC 1985, c C-34, s 1.1.

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