Google is being hit with another major anti-competition lawsuit and could be forced to split up its advertising business
- Canada accuses Google of abusing its dominant advertising market position
- The result of years of research into the company
- Google may have to sell two of its ad tech tools
The Canadian Competition Bureau has done this confirmed plans to take legal action against Google for alleged anti-competitive business practices in the online advertising industry.
The Bureau accused the company of forcing market participants to use its own ad technology tools and abusing its dominant position to make it difficult for rival companies to compete.
The news follows an earlier investigation into the company’s ad tech tools, which led to Canada’s Competition Bureau obtaining its first related court order in 2021. It then expanded its research earlier this year.
Google is now facing an anti-competitive lawsuit
In particular, Google has been criticized for giving its own tools preferential access to ad inventory.
taking losses to undercut rivals, and dictating the terms on which its own publisher clients could transact with competing ad tech tools.
“Google’s conduct has prevented rivals from competing on the merits of what they have to offer, to the detriment of Canadian advertisers, publishers and consumers,” said Competition Commissioner Matthew Boswell.
The complaint has now been transferred to the Competition Tribunal, and if it decides to take the legal action, Google could have to sell two of its ad tech tools, pay fines and stop engaging in anti-competitive practices.
Google’s Dan Taylor, VP of Global Ads, says the complaint “ignores the fierce competition where ad buyers and sellers have many choices,” adding: “Our ad tech tools help websites and apps fund their content, and enable businesses of all sizes able to effectively reach new customers.”
The Canadian investigation follows other related actions by the U.S. Department of Justice and the European Union. This isn’t Google’s first time dealing with Canada, either: in 2016, the company investigated the company’s online search, search and display advertising practices.
