Competition Bureau Sues Google Over Alleged Anti-Competitive Practices in Online Advertising
GATINEAU, QC – The Competition Bureau has filed legal action against Google, alleging the tech giant engaged in anti-competitive conduct within Canada’s online advertising technology market. The Bureau’s application to the Competition Tribunal, submitted on November 28, 2024, seeks to address practices it claims have entrenched Google’s market dominance and harmed competition, publishers, and advertisers.
The case focuses on Google’s role in the digital advertising ecosystem, where ads are displayed to users when visiting websites. Many publishers rely on revenue from digital ads, which are bought and sold through automated auctions using platforms collectively known as the “ad tech stack.” According to the Bureau’s investigation, Google dominates this market in Canada and has used its position to unfairly stifle competition.
Allegations Against Google
The Bureau alleges Google unlawfully tied together various ad tech tools to maintain its market dominance, locking market participants into its ecosystem. It also accuses Google of leveraging its position to manipulate auction dynamics by:
- Giving its own tools preferential access to ad inventory.
- Accepting negative margins in some cases to disadvantage competitors.
- Restricting publishers’ ability to transact with rival ad tech tools.
These practices, according to the Bureau, have distorted the competitive process, inflated advertising costs, reduced publishers’ revenues, and inhibited innovation.
Competition Bureau’s Demands
The Bureau’s application seeks several remedies, including:
- Requiring Google to divest two of its ad tech tools.
- Imposing financial penalties on Google to ensure compliance with the Competition Act.
- Prohibiting Google from continuing its alleged anti-competitive practices.
The Competition Tribunal will make the final decision on the matter.
Broader Implications
“This case is about ensuring a fair and competitive digital advertising landscape in Canada,” the Bureau stated in a release. The outcome could have far-reaching effects for Canadian publishers and advertisers, many of whom rely on ad revenues to sustain their operations.
Further details about the investigation and legal proceedings will be available on the Competition Bureau and Competition Tribunal websites.
SOURCE Government of Canada
