Canada’s Competition Bureau has sued Google, alleging anti-competitive behavior in the online advertising market. The lawsuit adds to a series of regulatory challenges facing Google, which is under similar scrutiny in the United States.
Allegations of Anti-Competitive Conduct
The Bureau accuses Google of illegally combining two advertising tools to strengthen its dominance. It also claims Google manipulated ad auctions to favor its services over competitors. The Bureau has asked Canada’s Competition Tribunal to force Google to sell two key ad tech products and pay a fine of up to 3% of its global revenue.
Google denies the allegations, insisting the advertising market remains competitive. According to Google, its tools help fund online content and enable businesses to reach customers. “We look forward to making our case in court,” said Dan Taylor, Google’s Vice President of Global Advertising.
The Core Dispute: Online Display Ads
The case focuses on online display ads, which appear while users browse websites. These ads are typically bought and sold through automated auctions using ad tech platforms, collectively referred to as the “ad tech stack.”
The Competition Bureau argues Google’s dominance in Canada’s ad tech market stems from deliberate actions to exclude competitors. It claims Google’s control resulted from anti-competitive practices rather than superior performance.
The Bureau is urging the tribunal to force Google to divest two ad tech tools and impose fines to ensure compliance with competition laws. Google has 45 days to respond to the lawsuit.
This action follows similar U.S. regulatory efforts. The Department of Justice and several states are pressuring Google to sell its Chrome browser to curb its monopoly in online search.
