Canada's competition authority has filed a significant antitrust complaint accusing Google of creating a monopoly in the online advertising technology sector. The Canadian Bureau of Competition Policy claims that Google has unlawfully used its dominance over key ad services to control and lock in the marketplace, stifling competition and harming both advertisers and publishers. This lawsuit echoes similar ongoing antitrust actions against the company in the United States, signaling a broader global effort to rein in the influence of major tech firms like Google, Amazon, and Apple over digital commerce.

The core of the Canadian case revolves around Google's control over multiple ad tech services, including its ad marketplace and auction platform. According to the Bureau, Google owns four of the largest online advertising technology tools in Canada, holding between 40% and 90% of the market share in these services. These tools facilitate around $200 billion in online ad sales annually within the country. Google's strategy of acquiring companies and integrating their ad tech services into its own ecosystem has allowed it to consolidate its power over the digital ad industry, the Bureau argues.

The Bureau’s complaint alleges that Google’s conduct is not just anti-competitive but has also entrenched its market dominance. Advertisers and publishers who wish to participate in Google's ad auctions are required to use its own suite of tools, thus preventing competitors from offering viable alternatives. Google is also accused of engaging in practices that force publishers to use its tools exclusively, dictating the terms under which they can list advertising opportunities on its platforms.

As part of the lawsuit, the Canadian competition authorities are asking the Competition Tribunal of Canada to compel Google to sell off two of its primary ad tech services and to impose fines of up to 3% of the company’s global revenue, which reached more than $305 billion in 2023. They are also seeking an injunction to prevent Google from continuing its alleged anti-competitive practices.

In response, Google has denied the charges, claiming that the ad tech market remains highly competitive and that advertisers and publishers have many options when choosing ad platforms. Dan Taylor, Google’s Vice President of Global Ads, stated that the company looks forward to defending its practices in court.

The allegations against Google are not isolated to Canada. In the United States, a similar lawsuit led by the U.S. Department of Justice and several state attorneys general also accuses Google of monopolistic behavior in the online advertising sector. Both cases highlight the significant influence that Google has over digital advertising and the potential risks that such concentrated power poses to market competition.

The outcome of the Canadian case could have wider implications for the future of digital advertising and the regulatory landscape for tech companies. As global authorities continue to scrutinize the practices of large technology firms, it is becoming increasingly clear that the digital ad space, where Google has long held a commanding position, will be a key battleground in the ongoing fight for fair competition and consumer protection in the tech industry.

NYTIMES