Competition Bureau Challenges Google in Market Abuse Lawsuit

The Competition Bureau is challenging Google in an ongoing lawsuit regarding the tech giant’s advertising practices in Canada. They accuse Google of trying to conceal its alleged anticompetitive behavior.

In legal documents filed recently, Competition Commissioner Matthew Boswell reiterated the bureau’s previous claims and criticized Google’s defense as disconnected from reality.

This follows Google’s response in February, where they denied misusing their dominant position in the online advertising market and disputed the bureau’s arguments.

Google refuted the bureau’s understanding of the ad market in their response and questioned the constitutionality of the financial penalty being sought against them.

The Competition Bureau’s lawsuit against Google centers on alleged anticompetitive actions in their online advertising business. The bureau is seeking to force Google to divest two of its services and pay a penalty.

The bureau claims that Google’s dominance is hindering competition, stifling innovation, driving up advertising costs, and reducing revenue for publishers. Their investigation, dating back to at least 2021, found that Google unlawfully linked its ad tech tools to maintain its market position.

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The case is being handled by the Competition Tribunal, a quasi-judicial body that examines cases brought by the competition commissioner under the Competition Act.

Google controls four major online ad tech services in Canada: DoubleClick for Publishers, AdX, Display & Video 360, and Google Ads. The bureau estimates Google’s market shares to be around 90% in publisher ad servers, 70% in advertiser networks, 60% in demand-side platforms, and 50% in ad exchanges.

The bureau is calling for Google to sell DoubleClick for Publishers and AdX, a demand that Google has contested.

In February, Google claimed that the bureau’s accusation of unlawfully tying their ad tech tools together is baseless and accused the bureau of violating their constitutional rights.

Google also argued that they face strong competition from companies like Microsoft, Meta, and Amazon, contrary to the bureau’s assertions.

The bureau disputes Google’s market definition in their latest filing, criticizing their approach as muddling separate markets with vague terminology.

Furthermore, the bureau argues that Google mistakenly treats all forms of digital advertising as interchangeable, impacting their analysis of dominance, anticompetitive behavior, and harm to competition.

The bureau accuses Google of using a systematic strategy to uphold their market dominance and stifle competitors. They believe the penalties they seek, including the financial penalty, are justified.

The bureau also criticizes Google’s response for containing unfounded personal attacks against the commissioner and the lawsuit, urging the tribunal to disregard them.