Canada’s competition watchdog has asked a court to force Google to sell off two of its advertising technology tools as it accuses the U.S. tech giant of abusing its dominance in the online advertising space. File Photo by John Angelillo/UPI | License Photo
Canada’s competition watchdog filed a lawsuit against Google on Thursday, accusing the U.S. Internet giant of having abused its dominance in the advertising technology space to maintain its market superiority.
In the filing with the Competition Tribunal, the Competition Bureau alleged that Google used its position as the largest provider of web advertising technology in Canada to stifle competition, preventing other technologies from threatening its business. Advertisement
“The Competition Bureau conducted an extensive investigation that found that 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,” Matthew Boswell, commissioner of the bureau, said in a statement.
“Google’s conduct has prevented rivals from being able to compete on the merits of what they have to offer, to the detriment of Canadian advertisers, publishers and consumers.” Advertisement
According to the Competition Bureau, Google owns four of the largest online advertising technology services used in the Great White North, holding a 90% market share in publisher ad servers, which manage ad inventory and online advertising.
It also owns a majority of other ad tech stack tools and services, which manage online advertising between advertisers and platforms.
“No other single ad tech provider has Google’s scale or reach across the ad tech stack, with over 200 billion Canadian web ad transactions flowing through Google’s ad tech tools in 2022,” it said.
Google has unlawfully tied various ad tech products together in order to maintain its dominance, the bureau alleges, adding that it also gives its own tools preferential access to ad inventory. The bureau further alleges that Google takes a financial hit in some circumstances in order to disadvantage rivals. Meanwhile, it also dictates the terms for how publishers are able to interact with rival companies’ ad technology tools, it said.
The independent law enforcement agency, which focuses on business practices, is asking the court to force Google to sell off two of its ad tools, bar it from continuing to engage in the alleged illegal practices and impose a hefty penalty. The proposed fine is either three times the amount Google earned from its alleged illegal practices or, if that amount cannot be determined, 3% of the company’s worldwide gross revenue. Advertisement
Dan Taylor, vice president of Global Ads at Google, told UPI in an emailed statement that the bureau’s complaint “ignores the intense competition where ad buyers and sellers have plenty of choice.
“Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers. Google remains committed to creating value for our publisher and advertiser partners in this highly competitive sector,” he said.
“We look forward to making our case in court.”
Google — along with other U.S. tech giants, such as Apple — has faced several high-profile antitrust lawsuits over the years, including cases related to its advertising business, which generates most of its revenue.
It is currently battling a similar lawsuit in the United States, where the administration of President Joe Biden has accused Google of “monopolizing multiple digital advertising technologies.”
In Canada, the Competition Bureau also investigated Google for alleged anti-competitive conduct related to online search, search advertising and display advertising. The bureau has obtained at least two court orders to expanded its investigations into the U.S. tech giant.
