Canada sues Google over alleged anti-competitive advertising practices

Canada’s Competition Bureau has filed a lawsuit against Google, accusing the company of engaging in anti-competitive practices in its online advertising business, reports a Kazinform News Agency correspondent. The bureau wants Google to sell off two key advertising technology services and pay a penalty.

The investigation found that Google “unlawfully” linked its advertising tools to maintain dominance in the market. These tools include the publisher ad server “DoubleClick for Publishers” and the ad exchange platform “AdX”. The case will now be reviewed by the Competition Tribunal, a legal body that addresses violations of Canada’s Competition Act.

The bureau claims that Google controls a significant share of the ad tech market, including: 90% of publisher ad servers, 70% of advertiser networks, 60% of demand-side platforms, and 50% of ad exchanges.

This dominance, according to the bureau, reduces competition, slows innovation, increases advertising costs, and lowers revenues for publishers.

Matthew Boswell, Canada’s Commissioner of Competition, said, “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”.

In response, Google insists the online advertising market is highly competitive. Dan Taylor, Google’s vice president of global ads, stated, “The bureau’s claims overlook the fact that ad buyers and sellers have many options.” Google plans to challenge the accusations.

This lawsuit comes as US regulators also target Google for monopolistic practices. A recent case from the US Department of Justice calls for drastic measures, including breaking up Google’s operations. The proposed actions would force Google to sell its Chrome web browser and limit Android’s ability to promote its search engine.