As search engine giant Google enters a U.S. courtroom in the nation’s first big federal antitrust trial in decades, observers say Canada would do well to pay attention.
On Tuesday, the U.S. Department of Justice, alongside the attorneys-general of 38 states, will go face-to-face with Google in a D.C. district courtroom, taking on the tech giant’s unrivalled two-decade domination of internet searches.
“Canada should be paying attention because this is a highly consequential case that could permanently restructure global digital markets,” he said.
“It’s also a lesson Ottawa can learn about the importance of having empowered regulators that can regulate a data-driven economy.”
Filed in 2020 under the administration of President Donald Trump, the U.S. government’s antitrust allegations centre around agreements Google made with web browser developers and mobile phone producers to ensure Google products — specifically their venerable search engine — were presented as default choices for consumers.
Ottawa, Balsillie said, has spent far too long “cozying up to big tech and entrenching their monopolies,” instead of developing its own capacity to govern digital markets.
Last year, Balsillie expressed concern over the government’s efforts within Bill C-11 to curb the proliferation of online surveillance and protecting online privacy.
“The business model pioneered by Google takes human experience — not just your searches, but also where you go, what you buy, who you meet or communicate with, your heart rate, income, political views, desires and prejudices — as its raw material and monetizes it by pushing micro-targeted content to individual users,” he wrote in a 2021 op-ed.
“The algorithms that push this content are addictive by design and exploit negative emotions — or, as Facebook insiders say, ‘Our algorithms exploit the human brain’s attraction to divisiveness.’”
Google has long faced criticism over its business practices.
This Thursday will mark the one-year anniversary of Google’s loss in court appealing a 4.125 billion euro ($6.03 billion Canadian) fine by the EU for requiring phone makers using their Android operating system to include their search and browser apps as a condition of access to the Google app store.
Google is also set to defend itself in a second antitrust suit filed by earlier this year by the department of justice — this time over its online advertising business.
Meanwhile, Google is embroiled in a high-stakes spat with the Government of Canada over the Online News Act — legislation that would require Google, along with fellow tech-giant and Facebook owner Meta, to enter into agreements with Canadian news publishers for use of their work.
“I feel like I’m back in the 1990s all of the sudden,” he said.
“They’re arguing, essentially, that Google has leveraged its market power dominance to be the default choice on a lot of different devices — it’s the same argument that was made against Microsoft.”
This week’s trial is the first such case for the department of justice since United States v. Microsoft — a landmark decision concerning the software maker’s practice of bundling their Internet Explorer web browser with copies of Windows operating system, and accusations that Microsoft engineered Windows APIs (application programming interfaces) to prefer it over competing browsers.
“The government at the time wanted to break Microsoft up, much like they had done with Bell telephone two decades prior to that,” Caraway said.
“It didn’t work out that way for the government, the appellate courts upheld the case for the most part, but not so much the proposition of breaking up Microsoft.”
“I think Canadian policymakers are already focused on Google,” he said.
“What happens in U.S. jurisdictions will automatically translate to the Canadian context as well.”
Daniel Tsai, a lawyer who also lectures on business, law and culture, told the National Post the current Liberal government’s tendency to procure policy ideas from other governments makes it a foregone conclusion that Canada will be paying close attention to how Google’s case pans out.
“Canada looks to the United States, and to a lesser extent the EU, for leadership,” he said.
“We even saw Canada copy Australia’s model when it came to online news and taxing of news links.”
If Washington maintains a hard line against Google, Tsai said, then Ottawa would naturally follow suit.
“Concurrently with the U.S. government, Canada would be in lockstep and likely take that as a cue to also be more aggressive in its prosecution and pursuit of anti-competition with big tech, and particularly with Google,” he said.
“The Canadian government should look really closely at this, but it shouldn’t just wait for direction from the U.S. government,” he said.
“They have to get off their laurels and be aggressive and proactive, and not try to copy what others have done.”
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
Companies in this story: (TSX:ROOT)
The Canadian Press. All rights reserved.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
The Canadian Press. All rights reserved.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
Companies in this story: (TSX:TRZ)
The Canadian Press. All rights reserved.
Armstrong scores, surging Vancouver Whitecaps beat slumping San Jose Earthquakes 2-0
As plant-based milk becomes more popular, brands look for new ways to compete
Looking for the next mystery bestseller? This crime bookstore can solve the case
Labour Minister praises Air Canada, pilots union for avoiding disruptive strike
CF Montreal finds its groove with 2-1 win over Charlotte
Toronto FC downs Austin FC to pick up three much-needed points in MLS playoff push
Liberal candidate in Montreal byelection says campaign is about her — not Trudeau
Inflation expected to ease to 2.1%, lowest level since March 2021: economists
