Google is facing yet another lawsuit—this time from Canada’s Competition Bureau, which accuses the tech giant of engaging in anti-competitive practices in online advertising. Alphabet’s Google could face significant penalties and may be required to divest its ad tech businesses as one of the proposed remedies.
Another lawsuit to break Google’s ad business
In its statement, the Competition Bureau alleges that Google has exploited its dominant market position to stifle competition, effectively locking customers into its advertising tools and platforms used for managing the buying and selling of digital ads.
“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,” said Matthew Boswell, Commissioner of Competition.
The Bureau’s findings claim that Google grants its own tools preferential access to ad inventory. Furthermore, the company is accused of “taking negative margins” to undercut competitors by offering lower ad inventory prices. The Bureau also asserts that Google imposes restrictive terms on customers, limiting their ability to transact with rival services.
These practices, according to the Bureau, hinder competition and slow down innovation and industry growth. The resulting impact is higher advertising costs, which ultimately reduce publisher revenue.
The lawsuit seeks to compel Google to divest two of its ad tech tools and cease its alleged anti-competitive behavior. The company also faces potential financial penalties under Canada’s Competition Act.
Google’s Response
In a statement to Engadget, Dan Taylor, Google’s VP of Global Ads, responded: “Google remains committed to creating value for our publisher and advertiser partners in this highly competitive sector. The CCB’s complaint ignores the intense competition where ad buyers and sellers have plenty of choice, and we look forward to making our case in court.”
This isn’t Google’s first run-in with the Competition Bureau. The regulator began investigating the company in 2016 for similar anti-competitive concerns, expanding the probe in 2021. Meanwhile, the U.S. Department of Justice filed a separate lawsuit against Google in 2021, seeking to curb the company’s dominance in online advertising.
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