Canada’s Competition Bureau, the country’s antitrust watchdog, took legal action against Google LLC today, alleging that it’s engaging in anticompetitive conduct in its online advertising technology services within Canada, and it’s seeking to force the company to divest some of its advertising technology tools.
The case claims that as the largest provider of web advertising, Google has abused its dominant position through “conduct intended to ensure that it would maintain and entrench its market power.” Google is further alleged to engage in conduct that locks market participants into using its own ad tech tools, prevents rivals from being able to compete on the merits of their offering, and otherwise distorts the competitive process.
The bureau states in the lawsuit that Google has unlawfully tied its ad tech tools to reinforce its market dominance and leveraged its position to distort auction dynamics. This includes giving its tools preferential access to ad inventory, using negative margins to disadvantage competitors and dictating restrictive terms for publishers interacting with rival tools. The practices allegedly undermine competition and harm the digital advertising ecosystem.
“The Competition Bureau conducted an extensive investigation that found that 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,” Commissioner of Competition Matthew Boswell said in a statement. “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. We are taking our case to the Tribunal to stop this conduct and its harmful effects in Canada.”
To remedy the situation, the Competition Bureau has not held back and is asking Canada’s Competition Tribunal to issue an order that will require Google to sell two of its ad tech tools. In addition, the request also seeks that Google pay a penalty for its anticompetitive practices and prohibits Google from continuing to engage in such behavior.
In response to the filing, Dan Taylor, vice president of global ads at Google, said in a statement reported by Reuters that the complaint “ignores the intense competition where ad buyers and sellers have plenty of choice and we look forward to making our case in court. Our advertising technology tools help websites and apps fund their content and enable businesses of all sizes to effectively reach new customers.”
The Canadian court case comes a week after the U.S. Department of Justice asked a federal judge to order Google to offload its Chrome browser. The Justice Department’s request came after an August ruling by the U.S. District Court for the District of Columbia. Judge Amit Mehta found that Google maintains an illegal monopoly in the search and search text advertising markets.
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