Canada's Competition Bureau has initiated a legal case against Google, accusing the tech giant of exploiting its dominance in the online advertising industry to harm competition and disadvantage Canadian businesses.

The bureau is seeking a court order for Google to sell two of its advertising technology tools and to impose penalties for what it describes as anti-competitive practices in Canada's digital advertising ecosystem. These practices, the bureau claims, hinder publishers and advertisers who rely on fair market systems for revenue and customer outreach.

Focus on Online Advertising Control
The case centers on how Google facilitates the buying and selling of online advertisements, a critical revenue source for publishers and a tool for advertisers to reach their audiences. The bureau alleges that Google exerts excessive control over this process, stifling competition and innovation.

Jennifer Quaid, an associate professor at the University of Ottawa, noted that Canada's case draws insights from recent antitrust actions against Google in the U.S. “The bureau has adapted the U.S. findings to the Canadian context, presenting a compelling argument against Google's practices,” she said.

U.S. Antitrust Cases Provide Precedent
In the past year, Google has faced three major antitrust cases in the U.S. The first, decided in August, found that Google violated U.S. antitrust laws by paying billions to remain the default search engine on various devices. The company plans to appeal.

The second case involves Google's advertising technology business, with the U.S. Department of Justice pushing to dismantle certain parts of its operations. The third case, resolved in California, ruled that Google’s app store practices were anti-competitive, a decision the company is contesting.

Allegations of Market Abuse in Canada
Canada's Competition Bureau alleges that Google abused its dominant position in online advertising by tying its ad tech tools together, limiting competitors’ access to the market. Google also allegedly granted its tools preferential access to ad inventory and imposed restrictive terms on publishers using rival services.

Matthew Boswell, Canada’s commissioner of competition, said, “Google has locked market participants into using its own ad tech tools, excluded competitors, and distorted the competitive process.”

In response, Dan Taylor, Google’s vice-president of Global Ads, said, “Our advertising technology tools enable businesses of all sizes to reach new customers and support websites and apps in funding their content. Advertisers and publishers have many options in the market.”

Testing Canada’s Amended Competition Laws
The case marks one of the first major tests of recent amendments to Canada’s Competition Act, introduced in 2022. These changes strengthened regulators’ ability to address market dominance, increasing penalties for violations and incorporating new factors like network effects and consumer choice into assessments.

While the new laws provide robust tools, Quaid cautioned that even significant changes to Google’s operations may not immediately reduce its market influence. “They might modify their practices or exit certain lines of business, but their overall economic footprint is unlikely to diminish quickly,” she said.

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