Canada sues Google over anti-competitive practices in online advertising

The Competition Bureau of Canada informed the beginning of a legal action against Google for alleged anti-competitive behavior within the online advertising technology sector, after an investigation that has taken place since 2016. In a press release, the Bureau announced the filing of the application with the Competition Tribunal, seeking to address what it describes as Google's abuse of its dominant position in the digital advertising market. 

The investigation is focused on Google's conduct in the ad tech space, where it is the largest provider of services that facilitate the buying and selling of online ads. In the heart of the claim, the Bureau argues that Google’s conduct harms competition by locking publishers, advertisers, and other market participants into using its own ad tech suite. 

This suite, known as the ad tech stack, is a set of tools that enables the automated buying and selling of online ads. According to the Bureau, Google’s strategy has effectively hindered competitors from entering the market or competing on equal terms, distorting the competitive process and resulting in higher prices, fewer choices, and less innovation in the online advertising market.

The agency said that the American company has engaged in several anti-competitive practices, including unlawfully tied together its various ad tech products to reinforce its market dominance. This includes giving preferential access to ad inventory through its own tools, undercutting competitors by offering negative margins, and imposing restrictive terms that limited the ability of publishers to use rival ad tech tools effectively.

To address these concerns, the Bureau is seeking several remedies through its application to the Competition Tribunal. Among its demands, the Bureau is calling for Google to sell off two of its key ad tech tools in order to restore competition in the market. The Bureau is also seeking financial penalties to encourage compliance with Canada's competition laws and a court order to prevent Google from continuing its allegedly anti-competitive practices. The final decision on these requests will rest with the Competition Tribunal, which will assess the application in due course.

The Bureau has been investigating Google's conduct since at least 2016, when it first raised concerns about anti-competitive practices related to online search and advertising, and comes at a time of increasing global scrutiny of Big Tech companies, as regulators in multiple countries examine whether dominant players like Google, Facebook, and Amazon engage in behavior that harms consumers and stifles competition.