Canada’s Competition Bureau has filed a lawsuit against Google, accusing the company of anti-competitive conduct in the online advertising market.
The case alleges that Google abused its dominant position by linking two of its key advertising tools to maintain market control and distort ad auctions to benefit its own services.
In a statement released Thursday, the Bureau claims that Google’s actions have stifled competition by forcing advertisers to use its tools, thereby creating barriers for rival ad-tech companies. The Competition Bureau has asked Canada’s Competition Tribunal to compel Google to sell two of its major ad-tech services and to impose a fine of up to 3% of the company’s global revenue.
Google responded to the allegations, with Dan Taylor, Vice President of Global Advertising, arguing that the complaint overlooks the intense competition in the market.
“Ad buyers and sellers have plenty of choice,” Taylor said.
He emphasized that Google’s advertising technology helps support the content of websites and apps and enables businesses to reach customers effectively.
The lawsuit centers on the digital advertising space, where Google’s ad tech services play a significant role. Ad inventory, or the space available on websites for advertising, is typically bought and sold through automated auctions using ad tech tools. Google controls a large share of the ad-tech market, providing services such as its ad exchange (AdX) and ad server (DFP), which facilitate the buying and selling of ads. According to the Bureau, Google’s practices have prevented competitors from offering alternative solutions, cementing its dominant position in the Canadian online advertising sector.
This legal action follows a lengthy investigation that began in 2020. The Competition Bureau claims that Google’s market behavior was not the result of superior competition but of deliberate actions designed to exclude rivals. The Bureau’s notice points out that Google’s near-total control of the ad-tech stack is the result of “calculated decisions” aimed at locking market participants into using its tools, ultimately distorting the competitive landscape.
Google’s ad-tech services generated substantial revenue, with the company controlling up to 90% of the market share for certain online ad tools in Canada. The Bureau has also charged that Google’s conduct has led to higher costs for advertisers and less choice for both buyers and sellers in the market.
In addition to asking for the sale of key advertising tools, the Competition Bureau is seeking a fine of up to 3% of Google’s global revenue, which totaled over $305 billion last year. The company has 45 days to respond to the tribunal’s proceedings.
This lawsuit is the latest in a series of regulatory challenges facing Google, following similar actions in the United States, where Google is facing multiple antitrust lawsuits, including allegations of monopolistic practices in its search engine and digital advertising businesses. The outcome of Canada’s case could have significant implications for Google’s operations and its dominance in the online advertising market.
BBC, the New York Times, and the Wall Street Journal contributed to this report.
