Canada Takes Google to Court Over Online Advertising Practices

Canada Sues Google Over Alleged Anti-Competitive Practices in Online Advertising

OTTAWA, Nov 28 (Reuters) – Canada’s Competition Bureau has filed a lawsuit against Google, accusing the tech giant of anti-competitive behavior in the online advertising sector. The Bureau announced on Thursday that it is seeking an order from the Competition Tribunal requiring Google to sell two of its ad tech tools and pay a penalty to ensure compliance with Canadian competition laws.

Google’s Response

Google has dismissed the allegations, stating that the complaint overlooks the intense competition in the digital advertising market. Dan Taylor, Google’s Vice President of Global Ads, defended the company’s practices:
“Our advertising tools help websites and apps fund their content while enabling businesses of all sizes to effectively reach new customers.”

Google added that advertisers and publishers have plenty of alternatives and expressed confidence in presenting its case in court.

Investigation Findings

The Competition Bureau launched its investigation in 2020 to assess whether Google’s practices harmed competition in the online advertising market. This year, the probe expanded to include Google’s advertising technology services.

The Bureau found that Google dominates the Canadian ad tech market and has allegedly abused its position to maintain and strengthen its market power. According to the Bureau, these actions have hindered competition, stifling innovation and choice for advertisers and publishers.

Parallels with U.S. and EU Cases

The case comes as Google faces similar legal challenges globally. In the United States, the Department of Justice (DOJ) has accused Google of monopolizing markets for publisher ad servers and advertiser ad networks.

Google has pushed back against the DOJ’s claims, arguing that the online advertising industry remains competitive and that its business decisions are lawful. The company also criticized the U.S. government for focusing on a narrow segment of the market. Closing arguments in the U.S. case were presented earlier this week.

In Europe, Google offered to sell its ad exchange earlier this year to address antitrust concerns from the European Union. However, publishers in the EU rejected the offer, deeming it inadequate, as reported by Reuters in September.

What’s Next?

The lawsuit filed by Canada’s Competition Bureau aims to curtail Google’s influence in the online advertising market and promote a fairer playing field. If successful, the case could lead to significant changes in how Google operates its ad technology in Canada. It also signals increasing scrutiny of big tech companies worldwide as governments seek to address concerns over market dominance and competition.

Source

Top picture credit: REUTERS/Steve Marcus/File Photo