The Competition Bureau in Canada recently took Google to court and has accused it of anti-competitive behaviour in the online advertising industry. The legal action is based on Google’s alleged misuse of its leading position.
The watchdog claims Google unlawfully linked its ad tech tools to stay at the top. These tools are part of the “ad tech stack,” and this a system that automates online ad auctions and determines which ads appear on websites.
The Bureau also alleges that Google manipulated ad auctions to favour its tools, sometimes selling ads at a loss to block rivals. This conduct, according to the watchdog, has affected competition, reduced innovation, and left advertisers and publishers with limited choices.
Matthew Boswell, Commissioner of Competition said, “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. 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.”
How Has Google’s Dominance Affected The Market?
Google holds a massive share of the Canadian ad tech market. The Bureau reported that it controls about 90% of publisher ad servers, 70% of advertiser networks, 60% of demand-side platforms, and 50% of ad exchanges.
This control has also inflated advertising costs and reduced revenue for publishers, according to the Bureau. Businesses trying to advertise online face fewer competitive options, and publishers have little room to negotiate better terms. The watchdog says that smaller businesses are mostly affected by this.
Matthew Boswell, the competition commissioner, has said Google’s actions are not a result of superior performance but are instead deliberate efforts to sideline competitors and tighten its grip on the market.
What Actions Are Being Demanded Against Google?
The Bureau has asked the Competition Tribunal, a quasi-judicial body in Canada, to intervene. It is demanding that Google sell off two key tools in its ad tech stack: DoubleClick for Publishers and AdX.
Also, the Bureau wants Google to stop any practices that distort competition and to pay a financial penalty. The tribunal will now assess the allegations and decide on what happens from here. If the Bureau’s demands are met, it could really change the online advertising market in Canada and perhaps other countries.
How Has Google Responded To These Allegations?
Google has denied this, saying that the online advertising industry remains highly competitive. Dan Taylor, Google’s vice-president of global advertising said, “Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers.”
Similar cases against Google have unfolded worldwide. France fined the company 220 million euros in 2021 for prioritising its own ad services. Investigations are ongoing in Britain, the EU, and the United States, where Google faces a federal court case over its alleged control of online advertising.
