Canada sues Google over alleged anti-competitive advertising practices

Canada's Competition Bureau has filed a lawsuit against Google, accusing the tech giant of anti-competitive behaviour in the online advertising sector.

The country's antitrust watchdog claims that Google illegally linked two of its advertising tools in order to maintain dominance in the market and manipulate ad auctions by giving preferential treatment to its own products, Caliber.Az reports referencing foreign media.

In response to the allegations, Google argued that the complaint "ignores the intense competition" in the market, where ad buyers and sellers have a wide range of choices. The company expressed its intention to defend itself in court. Dan Taylor, Google's vice president of global advertising, stated, "Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers."

The lawsuit centres on online web advertisements — the ads shown to users while visiting various websites. These ads are often bought and sold through automated auctions on digital platforms, using tools known as ad tech tools. The entire process, from inventory purchasing to ad placements, is referred to as the ad tech stack.

The Competition Bureau’s investigation concluded that Google had "abused its dominant position" in the ad tech industry. The agency claims that Google’s actions over several years have excluded competitors and solidified its control over online advertising. "Google’s near-total control of the ad-tech [software] is a function of premeditated design and conduct, rather than superior competitive performance or happenstance," the Bureau stated.

As part of the lawsuit, the Bureau is requesting that the Competition Tribunal, an independent court-like body, compel Google to sell two of its ad tech tools. Additionally, it is seeking a fine of up to 3% of Google’s global revenue to ensure compliance with Canada’s competition laws.

Google has 45 days to respond to the application. This lawsuit follows closely on the heels of another legal challenge in the US, where the Justice Department and a group of states are demanding that Google sell its Chrome browser as part of efforts to curb its monopoly in online search.

By Tamilla Hasanova