Canada’s Competition Bureau has launched a legal challenge against Google, accusing the company of anti-competitive conduct in the online advertising market. This lawsuit is the latest in a series of regulatory issues facing the tech giant, including similar actions in the United States.
The Competition Bureau alleges that Google unlawfully tied two of its advertising tools together in order to maintain its dominant market position. The Bureau claims that Google used this power to distort ad auctions by prioritizing its own products over those of competitors. As part of the legal proceedings, the Bureau is asking the Competition Tribunal to force Google to sell off two of its advertising tools.
In response, Google denied the accusations, arguing that the online advertising sector remains highly competitive. The company further stated that its advertising technologies help websites and apps fund their content while allowing businesses of all sizes to reach customers effectively. “We look forward to addressing these concerns in court,” said Dan Taylor, Vice President of Global Advertising at Google.
The case centers on online display ads—those shown to users while visiting other websites. These ads are typically purchased and sold through automated auctions using advertising technology platforms, collectively known as the “ad tech stack.”
According to the Competition Bureau, its investigation revealed that Google had exploited its dominant position as the largest provider of ad tech tools in Canada to exclude rivals and consolidate control over the online advertising ecosystem. The Bureau emphasized that Google’s overwhelming control over ad tech was not due to superior competition, but rather the result of deliberate anti-competitive conduct.
“Google’s near-total control of ad tech software stems from intentional actions, rather than market-driven success,” the Bureau stated in its announcement.
Along with its request for Google to sell two of its advertising tools, the Bureau is also seeking a fine of up to 3% of Google’s global revenue to ensure compliance with Canadian competition laws. Google has 45 days to respond to the Tribunal.
This legal action follows a similar move in the United States, where the U.S. Department of Justice and a group of states are pushing Google to divest its Chrome browser to curb the company’s dominance in online search.