Canada’s Competition Bureau announced on Thursday that it is suing Google, accusing the tech giant of engaging in anticompetitive practices within the online advertising sector. The bureau has called for Google to divest two of its ad technology services and to face financial penalties.
This action follows an investigation that concluded the company unlawfully used its tools to secure and sustain a dominant market position, according to reports from The Associated Press.
Google’s control over the ad tech market has raised concerns about stifled competition and increased advertising costs in Canada
The case will proceed to the Competition Tribunal, which is tasked with reviewing cases brought by the competition commissioner that involve violations of the Competition Act. The bureau is urging the tribunal to require Google to sell DoubleClick for Publishers, its ad server for publishers, as well as AdX, its ad exchange platform.
According to the bureau’s findings, Google controls approximately 90% of the market for publisher ad servers, 70% of advertiser networks, 60% of demand-side platforms, and around 50% of ad exchanges. Canada contends that this level of control has stifled competition, discouraged innovation, and driven up advertising costs, hindering the growth of rival firms.
In a statement cited by the AP, Competition Commissioner Matthew Boswell asserted, “Google has abused its dominant position in online advertising in Canada by engaging in conduct that locks market participants into using its own ad tech tools, excluding competitors, and distorting the competitive process.”
