The Canadian government has escalated its scrutiny of major technology firms by suing Google for alleged anti-competitive practices in the digital advertising market. Canada’s Competition Bureau filed the lawsuit with the Competition Tribunal, accusing Google of abusing its dominant position in ad technology to the detriment of competition, innovation, and the Canadian economy.
The bureau alleges that Google orchestrated a long-term strategy to link two of its core advertising tools, creating an interconnected system that unfairly disadvantaged competitors. By doing so, Google has allegedly manipulated the process of automated digital ad auctions, prioritizing its own products and securing an outsized share of the ad tech market in Canada.
Digital advertising plays a critical role in funding online content, with website publishers relying on ad revenue to sustain their operations. These transactions are facilitated through ad tech tools that form the backbone of the digital advertising ecosystem. The Competition Bureau claims that Google’s practices have disrupted this ecosystem by undermining competition and consolidating its own control over the ad tech stack.
“Google’s near-total dominance of ad tech in Canada is not a product of fair competition or innovation,” the bureau stated in its official announcement. “It is the result of intentional conduct designed to exclude rivals and entrench its market power.”
To address the alleged anti-competitive behavior, the Competition Bureau is asking the tribunal to require Google to divest two of its ad tech tools. It is also seeking a financial penalty amounting to up to 3% of Google’s global revenue, which could reach billions of dollars. The bureau described these measures as necessary to restore competitive balance in Canada’s digital advertising market and to ensure adherence to the country’s competition laws.
Google has denied any wrongdoing, insisting that its advertising technology operates in a fiercely competitive environment where businesses have ample alternatives. “Our tools help websites and apps monetize their content while enabling businesses of all sizes to connect with new customers,” said Dan Taylor, vice president of global advertising at Google. “We are confident in our ability to present our case and demonstrate the benefits of our tools in court.”
This case marks a significant escalation in the global push against Big Tech monopolies. Just days earlier, the U.S. Department of Justice, along with several state governments, filed its own legal action against Google, calling for structural changes to curb the company’s dominance in search and advertising markets.
As Canada joins the growing ranks of nations challenging the practices of dominant tech firms, the case underscores the increasing urgency to regulate the digital economy. The outcome of this lawsuit could have far-reaching implications, not just for Google but for the future of competition in global digital markets.
