Canada's Competition Bureau has filed a lawsuit against Google, accusing the tech giant of anti-competitive practices in its digital advertising business.
The Bureau claims Google's control over key advertising tools has stifled competition, inflated costs for advertisers, and reduced earnings for publishers, prompting a demand for significant changes to its operations.
Canada's Antitrust Lawsuit Targets Google's Ad Practices, Seeks Major Divestitures
The lawsuit, filed with the Competition Tribunal, alleges that Google used its dominant position to lock advertisers and publishers into its ecosystem by linking its advertising tools.
Specifically, advertisers could only access bids from Google's ad exchange, AdX, if they used its publisher ad server, DoubleClick for Publishers (DFP).
This tactic allegedly discouraged the use of rival platforms and gave Google an unfair advantage in the digital advertising market.
The Competition Bureau's investigation reveals Google's control over 90% of the publisher ad server market, 70% of advertiser networks, 60% of demand-side platforms, and 50% of ad exchanges in Canada, CBS News said.
This market dominance, according to the Bureau, has hindered competition and innovation, while inflating advertising costs and shrinking revenue for publishers.
To address these concerns, the Bureau is asking the Tribunal to order Google to divest its DFP and AdX services. Additionally, it seeks a financial penalty of either three times the profits Google made from these practices or 3% of the company's global revenue if profits cannot be calculated.
Matthew Boswell, Canada's Commissioner of Competition, emphasized the urgency of addressing these practices. He stated that Google's actions have disrupted fair competition, forcing market participants to rely on its tools while excluding rivals.
Google Denies Canadian Antitrust Allegations, Vows to Fight in Court
Google has denied the allegations, asserting that the digital advertising market is highly competitive and offers advertisers and publishers numerous choices. The company has pledged to defend itself in court.
This case is part of a broader global scrutiny of Google's advertising practices. Similar lawsuits have been filed in the United States and Europe.
In the US, the Department of Justice recently wrapped up closing arguments in a case alleging that Google has monopolized the digital ad market.
According to Newsweek, the outcome of Canada's case will be determined by the Competition Tribunal, which has the authority to impose penalties and enforce changes. Google now has 45 days to file its response to the Bureau's claims.
This lawsuit could have significant implications for the digital advertising landscape, both in Canada and globally, as regulators seek to curb the influence of tech giants like Google.
