Canada’s Competition Bureau is taking Google to court, accusing the tech giant of anti-competitive practices in online advertising.
According to the Bureau on Thursday, Google has used its dominant position in Canada’s ad tech market to unfairly maintain control, making it harder for competitors to thrive and increasing costs for advertisers.
This case focuses on digital advertising, where ads are placed on websites through automated systems called ad tech tools. These tools are part of a larger ecosystem known as the ad tech stack, which helps publishers sell ad space and advertisers buy it. The Bureau says Google dominates this ecosystem in Canada and has used its power to block competition.
“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,” said Matthew Boswell, Commissioner of Competition, 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. We are taking our case to the Tribunal to stop this conduct and its harmful effects in Canada,” added Boswell.
Google controls four major online advertising technology platforms widely used in Canada: DoubleClick for Publishers, AdX, Display & Video 360, and Google Ads.
The company is estimated to hold 90% of the market in publisher ad servers, 70% in advertiser networks, 60% in demand-side platforms, and 50% in ad exchanges.
According to the Bureau, Google’s dominance over the ad tech ecosystem is no accident. The Bureau claims that Google has intentionally linked its ad tech products together in ways that limit competition, block innovation, and maintain its market power.
The Bureau has asked the Competition Tribunal to force Google to sell two of its ad tech tools (DFP and AdX), stop anti-competitive practices, and pay a fine to the tune of either three times the value of the benefits Google gained from its anti-competitive practices or, if that can’t be calculated, 3% of Google’s global revenue.
Google’s global revenue in 2023 was just over $307 billion US, so taking that into account, 3% would be about $9.2 billion US ($12.9 billion CAD). You can bet Google is going to fight back in court. The Tribunal will decide the outcome of the case.
Last year, the U.S. Justice Department also sued Google over allegations of monopolizing digital advertising tech, while the UK’s antitrust agency claimed the same back in September. The EU similarly had antitrust claims against Google in 2023. Now, it’s Canada’s turn to follow suit.
Ottawa has already imposed the Online News Act, which Google agreed to, and is paying $100 million annually to legacy news, including the CBC.
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