- Canada accuses Google of abusing its dominant ads market position
- The result of a years-long investigation into the company
- Google could have to sell off two of its ad tech tools
Canada’s Competition Bureau has confirmed plans to take legal action against Google for alleged anticompetitive business practices in the online advertising industry.
The Bureau accused the firm of locking market participants into using its own ad tech tools and abusing its dominant position to make it difficult for rival companies to compete.
The news is the result of an earlier investigation into the company’s ad tech tools, which resulted in Canada’s Competition Bureau getting its first related court order in 2021. Susequently, it expanded its investigation earlier this year.
Google now faced with anticompetitive lawsuit
Specifically, Google has been criticized for giving its own tools preferential access to ad inventory,
taking losses to undercut rivals, and dictating the terms on which its own publisher customers could transact with rival ad tech tools.
“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,” stated Matthew Boswell, Commissioner of Competition.
The complaint has now been handed over to the Competition Tribunal, and if it decides to proceed with the legal action, Google could have to sell off two of its ad tech tools, pay penalties and stop engaging in anticompetitive practices.
Google’s Dan Taylor, VP of Global Ads, says the complaint “ignores the intense competition where ad buyers and sellers have plenty of choice,” adding, “Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers.”
Canada’s investigation follows other related action by the US Department of Justice and the European Union. It’s also not the first time Google has had a running with Canada – in 2016, it investigated the company’s online search, search advertising and display advertising practices.
