Canadian Watchdog Sues Google Over Alleged Anti-Competitive Practices

The Competition Bureau of Canada has filed a lawsuit against Google concerning alleged anti-competitive behavior within its online advertising operations. The nation’s antitrust authority stated that Google purportedly unlawfully connected two advertising instruments to sustain its market dominance and leveraged this powerful position to manipulate ad auctions by favoring its proprietary tools. The Bureau indicated it submitted an application to the Competition Tribunal, an autonomous body resembling a court, which seeks to compel Google to divest two of its ad technology tools. Google, in a statement, asserted that the Canadian complaint “ignores the intense competition where ad buyers and sellers have plenty of choice and we look forward to making our case in court”. Dan Taylor, vice-president of global advertising, commented, “Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers.” The core of this legal action involves online web advertisements—specifically, the ads displayed to users when they browse other websites. Digital ad inventory, which refers to the space website publishers offer for sale, is frequently traded via automated auctions utilizing digital platforms. These platforms are identified as ad tech tools, whereas the complete collection of tools employed throughout the purchasing process is termed the ad tech stack. An inquiry conducted by the Competition Bureau revealed that Google had “abused its dominant position” as Canada’s largest ad tech stack. In its announcement of the lawsuit on Thursday, the Competition Bureau stated, “Through a series of calculated decisions, taken over the course of multiple years, Google has excluded competitors and entrenched itself at the center of online advertising.” It further added, “Google’s near-total control of the ad-tech [software] is a function of premeditated design and conduct, rather than superior competitive performance or happenstance.” The Bureau indicated its request to the Competition Tribunal includes compelling Google to divest two of its ad tech tools and imposing a fine potentially reaching 3% of the company’s global revenue, intended “to promote compliance” with Canadian competition legislation. Google is allotted 45 days to submit its reply to the tribunal. This legal action follows by one week a demand from the U.S. Justice Department and several states for Google to sell Chrome, the globe’s most widely used web browser—this being one among several proposed solutions aimed at preventing the tech behemoth from sustaining its monopoly in online search.