SAN FRANCISCO (AP) — Government regulators in Canada are poised to open a formal investigation into whether Google is abusing its dominance of the Internet search market to stifle competition and drive up digital advertising prices.
Canada's Competition Bureau indicated in a filing made in an Ottawa federal court earlier this week that it suspects that Google Inc. has been breaking the country's antitrust laws. Regulators are seeking a court order that would require Google's Canadian subsidiary to furnish antitrust investigators with internal company records.
Based on its preliminary findings, the commission "has reason to believe that the manner in which Google operates its search engine and search-advertising platforms ... amount to an abuse of a dominant position," wrote Mark MacLachlan, a senior competition law office for the agency.
Among other things, Canadian regulators believe Google has been giving preferential treatment to its own services in its influential search rankings to thwart potential rivals. Investigators are also examining whether Google's partnerships with other websites and device makers are making it more difficult for rival products to compete. Those concerns mirror issues that have already been raised by regulators in other countries.
"We will work cooperatively with the Competition Bureau to answer any questions they may have," said Google spokeswoman Leslie Church. The Mountain View, Calif., company has consistently defended its search rankings as a form or free speech and denied doing anything to squash competition.