Canada’s Competition Bureau has launched a legal challenge against Google, accusing the tech giant of monopolizing the country’s online advertising market. The Bureau has filed an antitrust complaint with the Competition Tribunal, seeking to force Google to divest two of its key advertising technology tools and to impose financial penalties for its alleged anti-competitive conduct.
The Bureau argues that Google has used its market dominance to suppress competition and limit opportunities for rival advertising technology providers. The lawsuit claims that Google has manipulated the Canadian digital advertising market by locking publishers and advertisers into its own ecosystem of ad-tech tools, making it difficult for competitors to thrive.
The Competition Bureau’s investigation suggests that Google has employed unlawful tactics to strengthen its hold on the market. Specifically, it alleges that Google unlawfully bundled its advertising tools, giving them a competitive advantage in online ad auctions. By doing so, Google reportedly secured preferential access to ad inventory while imposing restrictive agreements on publishers using competing technologies.
Commissioner of Competition Matthew Boswell emphasized the gravity of the situation: “The Bureau’s investigation uncovered evidence that Google has exploited its dominant position in online advertising to exclude competition and distort the competitive process. This conduct harms both businesses and consumers, stifling innovation and limiting choice in Canada’s digital advertising industry.”
According to the Bureau, Google’s actions have entrenched its dominance, preventing other firms from competing based on quality or cost, and creating an unlevel playing field for advertisers and publishers.
In response, Google has denied the allegations, arguing that the online advertising market remains highly competitive, with other major players like Amazon and Microsoft offering viable alternatives. The company insists that its ad-tech solutions are cost-effective, secure, and efficient, positioning them as valuable tools in a highly competitive market.
“We believe that the online advertising space in Canada is vibrant and competitive,” a Google spokesperson said. “Our advertising solutions are designed to help businesses of all sizes reach their customers effectively. The claims made by the Bureau do not reflect the reality of the competitive landscape.”
This legal action in Canada follows similar antitrust challenges facing Google in other jurisdictions, including the United States, where the Department of Justice has also accused the company of monopolistic practices in the advertising technology sector. As regulators worldwide increase scrutiny of tech giants like Google, this case could have far-reaching implications for the digital advertising industry and the broader tech sector.
READ MORE: