Canada’s Competition Bureau Sues Google for Anti-Competitive Advertising Services

Canada’s Competition Bureau has sued Google, alleging anti-competitive conduct in the country’s online advertising market.

The bureau alleges that the tech giant abuses its dominant position in the market with policies that lock market participants into using its ad tech tools, the Bureau said in a Thursday (Nov. 28) press release.

Specifically, the bureau alleges that Google unlawfully tied its AdTech tools together and leveraged them to distort the dynamics of the auctions in which market participants buy and sell digital ad inventory, according to the release.

“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,” Commissioner of Competition Matthew Boswell said in the release. “We are taking our case to the [Competition Tribunal] to stop this conduct and its harmful effects in Canada.”

In a statement provided to PYMNTS, Google Vice President of Global Ads Dan Taylor said that the company’s advertising technology tools help publishers fund their content and help businesses reach new customers.

“Google remains committed to creating value for our publisher and advertiser partners in this highly competitive sector,” Taylor said. “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.”

In its lawsuit, the Competition Bureau asks the Competition Tribunal to order Google to sell two of its AdTech tools, pay a penalty to promote compliance with Canada’s Competition Act, and stop engaging in anticompetitive practices, according to the bureau’s press release.

The bureau escalated its scrutiny of Google’s online advertising activities in February, when it secured a court order to deepen its investigation.

Thursday’s announcement came three days after the U.S. Department of Justice (DOJ) concluded its antitrust case against Google, in which it argued that the tech giant illegally dominated the online advertising market.

The DOJ’s closing statements followed a 15-day trial held in September, where the government sought to demonstrate Google’s control over ad servers, advertiser networks and ad exchanges.

Google has consistently defended itself, arguing that prosecutors are misinterpreting antitrust laws to pressure the company into making changes that benefit competitors and are focusing on historical actions taken while the company was refining its advertising tools.