Why Canada is suing Google

Canada’s antitrust watchdog has revealed that it is suing Google over alleged anti-competitive behaviour in the company’s online advertising business.

The Competition Bureau claims that Google used its dominance in the sector to control the market unfairly and has called for the company to sell two of its key advertising services and pay a penalty.

According to the Competition Bureau, the lawsuit follows an investigation that found Google had “unlawfully” tied its ad tech tools together to preserve its dominant market position. As a result, the matter is now headed to the Competition Tribunal, a quasi-judicial body that reviews cases related to non-compliance with the Competition Act.

ABC NEWS reports that the Bureau has called for the tribunal to order Google to divest two key components of its advertising technology: its publisher ad server, DoubleClick for Publishers, and its ad exchange, AdX.

The Bureau estimates that Google controls a staggering 90% of the publisher ad server market, 70% of advertiser networks, 60% of demand-side platforms, and 50% of ad exchanges. This dominance, it argues, has stifled competition, hindered innovation, inflated advertising costs, and reduced publisher revenues.

The Canadian Commissioner of Competition, Matthew Boswell, said, “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.

In response, Google insists the online advertising market remains highly competitive.

Dan Taylor, Google’s Vice President of Global Ads, argued that the Bureau’s complaint “ignores the intense competition where ad buyers and sellers have plenty of choice.” Google intends to defend itself against the allegations.

The lawsuit follows a broader wave of regulatory scrutiny. In the U.S., federal regulators have sought to break up Google after a court found the company had abused its monopoly position.

The U.S. Department of Justice recently proposed a sweeping breakup, which includes forcing Google to sell its Chrome web browser and imposing restrictions on Android to prevent the company from favouring its own search engine.

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