Canada’s Competition Bureau is taking legal action against Google, aiming to dismantle parts of the tech giant’s advertising business.
The agency announced on Thursday that its investigation revealed Google allegedly abused its dominant position in programmatic web advertising to entrench its market power. The bureau claims Google favored its own tools in accessing online ad inventory, deliberately undercut rivals in some transactions, and imposed restrictive terms on customers to limit competition.
The lawsuit seeks to force Google to sell two of its ad tech tools and impose financial penalties for its actions. Matthew Boswell, Canada’s Commissioner of Competition, said Google’s practices have stifled competition and harmed Canadian advertisers, publishers, and consumers. “Google’s conduct has prevented rivals from being able to compete on the merits of what they have to offer,” Boswell said. “We are taking our case to the Tribunal to stop this conduct and its harmful effects in Canada.”
Google responded to the accusations through a statement shared with Reuters, dismissing the claims as ignoring what it described as an intensely competitive market. “Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers,” said Dan Taylor, Google’s vice president of Global Ads. The company plans to contest the allegations in court.
This lawsuit adds to Google’s ongoing antitrust challenges. In the U.S., the Department of Justice recently wrapped up arguments in its case against Google’s ad business, with a ruling expected soon.
Featured Image courtesy of Jakub Porzycki/NurPhoto via Getty Images
Follow us for more tech news updates.