Canada sues Google over alleged anticompetitive practices in online advertising

The Competition Bureau of Canada has filed an antitrust lawsuit against Google, accusing the tech giant of abusing its dominant position in the online advertising technology market to stifle competition and harm advertisers, publishers, and consumers.

The case, filed with the Competition Tribunal, is the latest in a series of global legal challenges targeting Google’s advertising practices.

The Bureau announced on Thursday that it had filed an application with the Competition Tribunal, seeking an order that would compel Google to sell two of its advertising technology tools and impose a penalty to ensure compliance with Canadian competition laws.

“The Competition Bureau conducted an extensive investigation that found that Google has abused its dominant position in online advertising in Canada by engaging in conduct that locks market participants into using its own ad tech tools, excluding competitors, and distorting the competitive process,” Commissioner of Competition Matthew Boswell said in a statement.

According to the watchdog, Google holds the largest market share across Canada’s ad tech stack and has “abused its dominant position” to entrench its market power.

Allegations of market abuse

The Bureau’s investigation alleges that Google has entrenched its dominance across the ad tech stack — a suite of tools that facilitates the buying and selling digital ad inventory. The Bureau asserts that Google unlawfully tied its ad tech tools together and leveraged its dominant position to distort auction dynamics. These actions reportedly forced market participants to rely on Google’s ecosystem, excluded competitors, and disrupted fair competition.

“Google’s conduct has prevented rivals from being able to compete on the merits of what they have to offer, to the detriment of Canadian advertisers, publishers, and consumers. We are taking our case to the Tribunal to stop this conduct and its harmful effects in Canada,” Boswell added.

The Bureau further claims that Google gave its own tools preferential access to advertising inventory, manipulated pricing to disadvantage rivals, and imposed restrictive terms on publishers transacting with competing platforms.

The Competition Bureau has asked the Tribunal to order Google to divest two of its ad tech tools, impose penalties to ensure compliance with Canada’s Competition Act and prohibit the company from continuing anti-competitive practices.

The Bureau’s investigation, which began in 2013, initially focused on Google’s search engine practices but expanded earlier this year to include its advertising technology services.

“Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers,” said Dan Taylor, VP of Global Ads at Google. “Google remains committed to creating value for our publisher and advertiser partners in this highly competitive sector. The CCB’s complaint ignores the intense competition where ad buyers and sellers have plenty of choice and we look forward to making our case in court.”

Parallel cases in the US and India

The Canadian lawsuit echoes similar antitrust challenges Google is facing globally, including in the US. The US Department of Justice (DOJ) recently concluded closing arguments in its antitrust case against Google, accusing the company of illegally dominating the online advertising market.

In its trial, the DOJ alleged that Google monopolized key ad tech markets, including publisher ad servers and advertiser ad networks, and sought to dominate ad exchanges. Prosecutors argued that Google’s practices “rigged the rules of the road,” preventing fair competition. Google countered by emphasizing the competitiveness of the online ad market and dismissed the DOJ’s claims as mischaracterizations of legitimate business decisions.

Meanwhile, in India, the Competition Commission of India (CCI) on Thursday ordered a probe into Google’s restrictive policies for real-money gaming apps. The investigation follows a complaint from the gaming platform WinZO, which accused Google of discriminatory practices by excluding it from the Google Play Store while allowing competitors.

In 2022, the Indian authority imposed a monetary penalty of around $300 million on the search engine major for various anti-competitive practices.

A global spotlight on Google’s practices

Earlier this month the US DOJ has recommended extensive measures to limit Google’s dominance, including the potential breakup of its Chrome browser and Android operating system. These products are pivotal distribution platforms for Google Search, which was deemed an illegal monopoly in Federal Judge Amit Mehta’s August ruling.

These cases collectively highlight the increasing scrutiny of Google’s practices worldwide as regulators seek to address concerns about its dominance across various markets, including online advertising, app ecosystems, and gaming platforms.

For Google, the stakes remain high, as these lawsuits could lead to significant penalties, structural changes to its business, and a precedent for regulating Big Tech. With competition watchdogs ramping up their efforts globally, the outcomes of these cases could reshape the digital advertising landscape for years to come.