In a significant development reflecting the intensifying global scrutiny of Big Tech, Canada’s Competition Bureau has launched a lawsuit against Google, accusing the tech giant of abusing its market dominance to stifle competition in the digital advertising sector. Filed with the Competition Tribunal, the case centers on allegations that Google manipulated its ad technology ecosystem, using unfair practices to maintain control over Canada’s ad tech market and exclude competitors.
The lawsuit focuses on Google’s role as a dominant player in the digital advertising supply chain, where it provides critical ad technology tools that facilitate automated auctions for ad space on websites. Publishers rely on these auctions to sell ad inventory, while advertisers depend on them to reach their target audiences. The bureau alleges that Google has exploited its position by linking two of its ad tech tools in ways that force advertisers and publishers to rely on its services, thereby marginalizing rival technologies and distorting competition.
The Competition Bureau’s investigation revealed a pattern of calculated decisions by Google over several years, which it claims were designed to entrench the company’s dominance. According to the bureau, this dominance is not a result of innovation or competitive merit but a deliberate strategy to manipulate the market. The bureau emphasized that these practices harm the broader digital advertising ecosystem by limiting choice, driving up costs for advertisers, and reducing revenue opportunities for publishers.
“Google’s near-total control of ad tech in Canada reflects intentional conduct, not natural market dynamics,” the bureau stated. “This behavior has allowed Google to solidify its position at the heart of online advertising, stifling competition and innovation in the process.”
As part of its lawsuit, the bureau is seeking an order requiring Google to divest two of its ad tech tools, which it believes are central to the alleged anti-competitive conduct. Additionally, it is demanding that Google pay a fine of up to 3% of its global revenue, a penalty designed to enforce compliance with Canada’s competition laws and deter similar practices in the future.
Google has denied the allegations, maintaining that its ad technology operates in a competitive environment where buyers and sellers have numerous alternatives. Dan Taylor, Google’s vice president of global advertising, defended the company’s practices, stating, “Our tools are designed to help businesses of all sizes connect with customers and to support publishers in monetizing their content effectively. We strongly disagree with these allegations and are confident in presenting our case.”
This lawsuit emerges amid a global wave of antitrust challenges against Google and other major tech firms. Just days earlier, the U.S. Department of Justice, along with multiple states, filed a case seeking significant structural changes, including the divestment of Google’s Chrome browser. These developments highlight a growing consensus among regulators worldwide that unchecked market power in the tech sector poses risks to competition, innovation, and consumer choice.
The case underscores a critical moment in Canada’s approach to regulating Big Tech, with potential implications that extend far beyond its borders. With Google given 45 days to respond, the proceedings are poised to shape the future of digital advertising governance and set a precedent for antitrust enforcement in the technology sector.
