Canada’s competition watchdog sues Google for anti-competitive behaviour in online ad market

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Canada’s antitrust watchdog is taking legal action against Google LLC, following an investigation into its anti-competitive practices in the digital ad space, according to a release on Thursday.

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“The Bureau’s investigation found that, in Canada, Google is the largest provider across the ad tech stack for web advertising and has abused its dominant position through conduct intended to ensure that it would maintain and entrench its market power,” read the release.

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The Competition Bureau of Canada argues Google locks market participants into using its own advertising tech tools and gives its tools preferential access to ad inventory, while also making it harder for its customers to use rival products.

“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,” said Matthew Boswell, commissioner of the Competition Bureau, in a statement accompanying the release. “We are taking our case to the Tribunal to stop this conduct and its harmful effects in Canada.”

The competition watchdog has referred the case to the Competition Tribunal, which adjudicates cases regarding laws under the Competition Act. The watchdog is seeking an order that would make Google sell two of its ad tech tools and direct Google to pay a penalty. The order would also prohibit Google from engaging in any future anti-competitive practices.

In a statement following the announcement, Google’s vice-president of global ads Dan Taylor said the watchdog’s complaint “ignores the intense competition where ad buyers and sellers have plenty of choice and we look forward to making our case in court.”

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