Canada’s Competition Bureau is prosecuting Google for reported anti-competitive conduct in its online advertising.
In a statement, the country’s antitrust watchdog claimed Google had unlawfully linked two advertising tools to ensure they maintain market supremacy and they allegedly used this dominant position to distort ad auctions by being partial to its own tools.
The agency further said it had filed an application with the Competition Tribunal – a court-like independent body, that would mandate Google to sell two of its ad technology tools.
Google released a statement saying the complaint out of Canada “ignores the intense competition where ad buyers and sellers have plenty of choice and we look forward to making our case in court”.
“Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers,” Dan Taylor, vice-president of global advertising for Google said.
This case centres on online web advertisements – the ads shown to users while visiting other websites.
Digital ad inventory – the space website publishers make available for sale – is often bought and sold through automated auctions using digital platforms.
These platforms are called ad tech tools, while the entire set of tools used through the purchasing process are known as the ad tech stack.
Meanwhile, the Competition Bureau announced that an investigation found that Google had “abused its dominant position” had the biggest ad tech stack in Canada.
In a notice announcing the suit on Thursday, the Competition Bureau said;
“Through a series of calculated decisions, taken over the course of multiple years, Google has excluded competitors and entrenched itself at the center of online advertising.”
“Google’s near-total control of the ad-tech [software] is a function of premeditated design and conduct, rather than superior competitive performance or happenstance.”
The agency also said it was asking the Competition Tribunal to force Google to sell two of its ad tech tools, and pay a fine of as much as 3% of the company’s global revenue “to promote compliance” with Canada’s competition laws.
Google has just 45 days to file its response with the tribunal.
