Canada’s competition agency has sued Google for alleged anti-competitive behavior in the country’s online advertising market. The agency accuses the tech company of “maintaining and enhancing” its market power through unfair practices.
Competition Bureau
Google is the largest player in Canada’s advertising space. The agency has filed a complaint with the Competition Tribunal demanding that Google stop anti-competitive practices, pay a fine and sell two of its ad tech (ad tech) tools.
“Google’s conduct has hindered competitors from competing on their own merits. This is detrimental to Canadian advertisers, publishers and consumers. We are taking this case to the Tribunal to stop this behavior and its harmful effects in Canada,” Competition Commissioner Matthew Boswell said.
Sophisticated platforms
Online ads are a revenue source for websites and are displayed through a process that uses advanced platforms known as ad tech tools. These tools are part of a broader set of technologies, called the ad tech stack, that buy and sell ads through automated auctions.
Market dominance
According to the agency, Google strengthened its market dominance by illegally linking its various ad tech tools. In addition, Google allegedly rigged auction dynamics by giving its own tools preferential access to ad inventory and sometimes accepting negative margins to disadvantage competitors. Google also allegedly dictated the terms under which customers could sell ads through competing tools.
In a statement to Reuters news agency, Google called the complaint baseless. The company stated that the complaint “ignores the intense competition where ad buyers and sellers have plenty of choice and we look forward to making our case in court.”
Other countries
The suit in Canada follows shortly after a similar investigation in India into Google’s gaming application policies. Google’s advertising business is also under scrutiny in the United States. The U.S. Justice Department is considering measures to unbundle parts of Google’s operations, such as its search business.
Also read: After Google, Microsoft is now also facing an FTC antitrust probe