Canada’s Competition Bureau Pushes Back Against Google’s Charter Challenge in Ad Case

According to recent filings, the Bureau will petition the Competition Tribunal to dismiss Google’s proposed motion to pursue a constitutional argument. The commissioner has labeled the move as “premature” and “without merit,” per a statement filed earlier this month.

The case, which originated last November, centers on allegations that Google unlawfully bundled several of its advertising technologies—including DoubleClick for Publishers, AdX, Display & Video 360, and Google Ad—to reinforce its control over the digital advertising ecosystem. The Competition Bureau contends that these practices helped Google cement a near-monopoly, citing figures such as a 90 per cent share in publisher ad servers and significant dominance in other ad tech segments.

Per a statement from the Bureau, the company’s behavior has hampered innovation, raised costs for advertisers, and suppressed earnings for publishers by limiting market access for competitors.

As part of its legal action, the Bureau is seeking a divestiture of specific Google assets—namely, its publisher ad server (DoubleClick for Publishers) and ad exchange (AdX). The Bureau is also pursuing a substantial monetary penalty. If Google is found liable, that fine could amount to either three times the value of benefits gained from the alleged conduct or three per cent of its global gross revenues, depending on what the Tribunal determines to be more appropriate.

Google has objected to the proposed penalty, describing it in court filings as “extraordinary and unprecedented.” The company argues the fine could reach billions of dollars—far exceeding its advertising profits in Canada—and claims such a punishment would be “completely disproportionate” to the alleged violations.

Read more: Canada Files Antitrust Lawsuit Against Google Over Ad-Tech Dominance

In response, Google has launched a constitutional challenge, asserting that the proposed penalties violate its rights under the Canadian Charter of Rights and Freedoms. Specifically, the company pointed to sections concerning life, liberty, and security, as well as protection from unreasonable search or seizure.

However, the Bureau contends the challenge is speculative, noting that no ruling on liability has yet been made and no penalties have been finalized. “In effect, Google seeks to have the tribunal rule that its rights have been breached on the basis of a hypothetical possibility, rather than an actual breach,” the Bureau stated in its filing.

The constitutional challenge marks a significant escalation in the ongoing legal dispute and could potentially influence how future competition-related fines are assessed in Canada. According to a statement from the Bureau, it will continue to oppose what it views as procedural tactics aimed at derailing the core case before substantive matters are addressed.

When the initial complaint was filed in November, Dan Taylor, Google’s vice-president of global ads, defended the company’s practices, saying the Bureau’s claims “ignore the intense competition where ad buyers and sellers have plenty of choice.”