The Competition Bureau has accused Google of anti-competitive conduct with regard to online advertising technology services in Canada in an application to the Competition Tribunal.
Following an investigation, the bureau determined that as the biggest provider across the ad tech stack for web advertising, Google had displayed conduct that kept competitors from being able to challenge the tech giant through the merits of their own offerings, the bureau said in a statement.
The Competition Bureau previously investigated Google for supposed anti-competitive conduct in relation to online search, search advertising and display advertising in 2016. The bureau first obtained a court order related to its investigation of Google’s online advertising business in 2021; it got another court order to expand the investigation earlier this year.
“The Competition Bureau conducted an extensive investigation that found that 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,” Commissioner of Competition Matthew Boswell said in a statement. “Google's conduct has prevented rivals from being able to compete on the merits of what they have to offer, to the detriment of Canadian advertisers, publishers and consumers.”
The bureau also found that Google leveraged its position to influence auction dynamics in the following ways:
- By granting Google tools preferential access to ad inventory
- Disadvantaging competitors in some cases by taking negative margins
- Setting the terms on which its publisher customers could do business with competing ad tech tools
The bureau asserted that Google has solidified its market dominance through such conduct, which has also enabled it to hinder competitors, limit innovation, raise advertising costs, and cut publishers’ revenues.
In its application, which will be published on the tribunal’s website, the Competition Bureau sought an order that would require Google to take the following actions:
- Sell two of its ad tech tools
- Pay a penalty to comply with the Competition Act
- Forbid Google from engaging in further anti-competitive practices
The Competition Tribunal is set to make the final decision on the case. The Competition Bureau has also provided a backgrounder on the Google investigation on its website, along with an outline of subsequent steps.