Competition Bureau Takes Legal Action Against Google Over Ad Tech Practices
The tech giant Google is now facing legal action from Canada’s Competition Bureau for allegedly abusing its dominant position in the online advertising technology market.
The Bureau's investigation has revealed that Google, as the largest provider of ad tech in the country, has been manipulating market dynamics to maintain its control and restrict fair competition.
Allegations of Market Manipulation
The Competition Bureau claims that Google’s practices are harmful to both the competitive landscape and Canadian consumers.
The investigation found that Google is leveraging its power by forcing market participants to rely exclusively on its advertising tools.
This approach stifles competition, disrupting the fundamental workings of a fair market.
Google allegedly restricts access to ad inventory for rivals and manipulates auction dynamics to favour its own products.
Google’s Alleged Anti-Competitive Practices
According to the Bureau, Google has been tying several of its ad tech tools together, which forces businesses to use multiple tools in its suite, even when alternatives may be more cost-effective or efficient.
Google’s preferential treatment of its own tools reportedly extends to giving them exclusive access to ad inventory, as well as selling ads at a loss to outprice competitors and distort market conditions.
This tactic includes imposing terms that disadvantage rival ad tech providers, giving Google an unfair edge in the industry.
Bureau’s Call for Remedies and Financial Penalties
In response to these concerns, the Competition Bureau is seeking a series of remedies through the Competition Tribunal.
This includes the sale of two of Google’s ad tech tools to eliminate the company’s unfair market hold.
Additionally, the Bureau is demanding a financial penalty to enforce compliance with Canada’s Competition Act, alongside a ban on continuing the alleged anti-competitive practices.
Google's Response: Emphasising Market Competition
Google has strongly denied the allegations, arguing that the complaint from the Bureau disregards the competitive nature of the advertising sector.
In a statement, Dan Taylor, Google’s vice president for global ads, insisted,
“Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers.”
Google’s defence highlights the intense competition within the sector, where both ad buyers and sellers have a wide range of choices, he said.
The company is prepared to present its case in court, challenging the Bureau's claims.
Global Attention on Google’s Ad Tech Practices
This legal action is part of a broader global scrutiny of Google's advertising practices.
In 2021, France's competition regulator fined Google 220 million euros for favouring its own services in the online advertising sector.
Similar investigations are underway in the United Kingdom, the European Union, and the United States, where the company faces legal challenges over its alleged monopolistic behaviour in the advertising market.
Ongoing Investigation in the US
Meanwhile, Google’s ongoing legal battles also include a significant federal case in the United States.
This week, the US government and Google faced off in a federal court, with the US accusing the company of unfairly dominating the online advertising space.
If the court finds Google in violation of antitrust laws, a new phase of the trial will focus on how the company should remedy its practices and comply with potential rulings.
As the case progresses, the Competition Bureau’s investigation remains a critical step in evaluating Google’s role in shaping the online advertising ecosystem, both in Canada and beyond.
Catherine
Kikyo