Canada’s Competition Bureau has sued Google for alleged anti-competitive practices in the online advertising market. This lawsuit adds to a growing list of legal challenges Google faces globally, including similar cases in the U.S.
Allegations of Anti-Competitive Behavior
The Competition Bureau claims Google unlawfully linked two advertising tools to maintain its market dominance. It accuses the company of distorting advertising auctions to favor its own services over competitors. To address this, the regulator seeks a court order requiring Google to sell two of its ad technology tools.
Google disputes these allegations, emphasizing the competitive nature of the digital advertising industry. The company argues its tools benefit both publishers and advertisers by funding content and helping businesses reach customers. Dan Taylor, Google’s Vice President of Global Advertising, stated, “We look forward to making our case in court.”
Focus on Ad Tech and Market Dominance
The lawsuit highlights web advertisements bought and sold through automated auctions managed by ad tech platforms. The “ad tech stack” refers to the suite of tools used in these transactions.
The Competition Bureau alleges Google exploited its position as Canada’s largest ad tech provider to exclude competitors. It claims Google’s dominance results from deliberate strategies, not superior performance. The Bureau stated, “Google’s near-total control of ad tech software is not due to superior competitive performance but premeditated design and conduct.”
The regulator is demanding Google sell two ad tools and pay a fine of up to 3% of its global revenue. Google has 45 days to respond to the tribunal’s complaint.
This case follows similar action in the U.S., where the Department of Justice and several states recently called for Google to divest Chrome, aiming to reduce its monopoly in online search.