Competition Bureau Files Lawsuit Against Google, Demands Sale of Two Advertising Services
The Competition Bureau is taking legal action against Google for alleged anticompetitive behavior in the company’s online advertising business. The bureau is calling for Google to divest two of its services and pay a fine.
The watchdog announced on Thursday that it believes this action is necessary due to findings from its investigation, which concluded that Google had unlawfully linked its ad tech tools to maintain its dominance in the market. This dominance, according to the bureau, has stifled competition, hindered innovation, raised advertising costs, and decreased revenues for publishers.
These latest developments mark an escalation in the bureau’s examination of Google and the online advertising industry, which revolves around ads displayed to website visitors. Website owners offer ad space to generate income, and the buying and selling of ads typically occurs through automated auctions using advanced platforms.
The tools utilized in this process collectively form the ad tech stack. The bureau alleges that Google exerts near-total control over this stack by owning four major online advertising technology services in Canada: DoubleClick for Publishers, AdX, Display & Video 360, and Google Ads.
Despite Google’s alleged market dominance, Dan Taylor, Google’s VP of Global Ads, insists that the sector is highly competitive. He stated that the bureau’s complaint overlooks the robust competition present for ad buyers and sellers.
The matter will be decided by the Competition Tribunal, a quasi-judicial body that hears cases related to non-compliance with the Competition Act. The bureau has requested the tribunal to mandate Google to sell DoubleClick for Publishers and AdX and to pay a substantial penalty.
The bureau’s investigation, which began in 2021, revealed various tactics by Google to reinforce its dominance in the ad tech ecosystem. The bureau alleges that Google manipulated auction dynamics, favored its own ad exchange, and imposed restrictions on how publishers could interact with rival ad tech tools.
The allegations are based on evidence gathered over several years, including court orders that compelled Google to disclose documents related to its online advertising business. Under the Competition Tribunal’s procedures, Google has 45 days to respond to the bureau’s application, followed by a 14-day reply period.
