Canada Sues Google for Anti-Competitive Ad Practices

Canada’s Competition Bureau has taken legal action against Alphabet’s Google, accusing the company of engaging in anti-competitive practices within the online advertising sector.

The Bureau has filed an application with the Competition Tribunal, requesting a court order that would force Google to divest two of its major ad technology tools. Additionally, the watchdog is seeking a penalty to ensure Google’s compliance with Canada’s competition regulations.

In response, Google stated that the lawsuit fails to acknowledge the highly competitive nature of the ad-buying market, which involves many willing buyers and sellers. According to Google, its ad tech tools enable websites and apps to monetize their content and help businesses of all sizes reach new customers. Dan Taylor, Google’s Vice President of Global Ads, expressed that the company looks forward to presenting its case in court.

The Competition Bureau began investigating Google in 2020 to determine if the company had engaged in anti-competitive behavior in the online advertising industry. This investigation broadened earlier this year to include Google’s ad technology services beyond just its search business. The agency asserted that Google has dominated the ad tech market in Canada through allegedly anti-competitive tactics.

This lawsuit aligns with similar antitrust actions by the US Department of Justice, which has accused Google of monopolizing the market for publisher ad servers and advertiser ad networks.

Google defended its practices, arguing that the US case is selective and overlooks competition in other parts of the online advertising business. The company maintains that its business decisions are lawful and that the market is competitive.

Earlier this year, Reuters reported that Google attempted to resolve an antitrust investigation in the European Union by offering to sell an ad exchange platform. However, European publishers rejected this proposal, deeming it insufficient to address the concerns raised by the competition probe.