TORONTO — Canada’s Competition Bureau announced on Thursday that it has filed a lawsuit against Google, accusing the tech giant of anticompetitive/Antitrust Watchdog practices in its online advertising business. The watchdog is seeking penalties and the divestiture of two major ad tech services, aiming to curb what it describes as Google’s dominance in the digital advertising sector.
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The bureau’s investigation concluded that Google “unlawfully” tied together its advertising technology tools to strengthen its dominant market position. This behavior allegedly suppressed competition, inflated advertising costs, and reduced publisher revenues.
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The case will be heard by the Competition Tribunal, a judicial body responsible for enforcing Canada’s Competition Act.
The watchdog is demanding that Google divest its DoubleClick for Publishers ad server and its AdX ad exchange, claiming the company holds significant market shares:
- 90% in publisher ad servers
- 70% in advertiser networks
- 60% in demand-side platforms
- 50% in ad exchanges
“Google has abused its dominant position in online advertising in Canada by engaging in conduct that locks market participants into its tools, excludes competitors, and distorts competition,” said Matthew Boswell, Commissioner of Competition.
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Google has denied the allegations, stating that the online advertising market remains highly competitive.
“This complaint ignores the intense competition where ad buyers and sellers have plenty of choices,” said Dan Taylor, Google’s vice president of global ads. The company confirmed it plans to defend itself against the claims.
This lawsuit aligns with broader efforts to regulate Google’s practices worldwide. In the United States, regulators have proposed breaking up Google’s ad business. A recent U.S. Department of Justice filing suggests divesting Google’s Chrome web browser and imposing restrictions to prevent Android from favoring Google’s search engine.
The Competition Bureau’s move highlights escalating efforts to address Google’s influence in the digital advertising ecosystem.
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