Canada’s Competition Bureau has filed a lawsuit against Google, accusing the tech company of engaging in anti-competitive practices in the online advertising sector. This lawsuit adds to the mounting regulatory pressures facing Google, including similar actions underway in the United States.
In its statement, the Bureau alleged that Google had unlawfully linked two of its advertising tools in order to maintain its dominant position in the market. It also claims that this dominance allowed Google to manipulate ad auctions, giving preference to its own tools over those of competitors. The Bureau is seeking a court order that would require Google to divest two of its ad tech tools.
Responding to the allegations, Google rejected the claims, arguing that they overlook the competitive nature of the online advertising market. The company emphasized that its advertising tools are vital for helping websites and apps fund their content, while also enabling businesses of all sizes to reach new customers. “We look forward to presenting our case in court,” said Dan Taylor, Google’s Vice President of Global Advertising.
The lawsuit focuses on online display ads—those shown to users when they visit websites. These ads are typically bought and sold through automated auctions on ad tech platforms, which make up the “ad tech stack” used in the ad purchasing process.
According to the Competition Bureau, its investigation found that Google had used its dominant position as the largest provider of ad tech tools in Canada to exclude competitors and consolidate its control over online advertising. The Bureau stated that Google’s near-total dominance of the ad tech market resulted from deliberate and anti-competitive actions, rather than superior performance in a competitive market.
“Google’s control of the ad tech software is the result of intentional design and conduct, rather than a consequence of better competition or market forces,” the Bureau said in its notice.
In addition to the demand for Google to sell two of its ad tools, the Bureau is seeking a fine of up to 3% of Google’s global revenue to enforce compliance with Canadian competition laws. Google has 45 days to submit a response to the tribunal.
This lawsuit follows a recent move by the U.S. Department of Justice and a coalition of states, which has also demanded that Google sell Chrome, its widely used web browser, as part of efforts to reduce the company’s dominance in online search.
