Canada’s competition regulator has filed a lawsuit against Google, accusing the company of engaging in anti-competitive practices in the online advertising sector.
Google, which is the dominant provider of advertising technology tools in Canada, is being scrutinized for its role in the automated ad auctions that determine which ads appear when people visit websites. According to the Competition Bureau, Google has abused its dominant position by forcing market participants to use its ad tech tools, while giving its own services preferential treatment. The company is also accused of selling ads at a loss to hinder competitors and imposing strict conditions on the use of other ad tech tools.
Matthew Boswell, Commissioner of Competition, stated that he would ask a tribunal to create a fairer market by requiring Google to divest two of its ad tech tools and to pay an undisclosed fine.
In response, Google spokesperson Dan Taylor stated that the company intends to challenge the allegations, arguing that they overlook the significant competition in the ad tech industry, where buyers and sellers have many options.
This legal action follows similar investigations and fines against Google in other countries. In June 2021, France’s competition authority fined Google €220 million for favouring its own advertising services. The company is also under investigation in the UK, EU, and US for its advertising practices. Additionally, Google recently faced off against the US government in a federal court over accusations of monopolistic control in online advertising.
If the court finds Google guilty, the next phase of the trial will determine the appropriate penalties and corrective measures.