The Canadian Competition Bureau has launched a significant legal challenge against Google, accusing the tech giant of abusing its dominant position in the online advertising market. The bureau claims Google’s practices harm competition, inflate costs for advertisers, and reduce revenues for Canadian publishers.
The legal action calls for Google to sell two of its advertising technology tools and pay penalties for alleged anti-competitive behavior. The case mirrors recent antitrust lawsuits in the United States but adapts them to the Canadian context. Jennifer Quaid, a law professor at the University of Ottawa, said the bureau has built a strong case by leveraging insights from U.S. proceedings while addressing Canada-specific concerns.
The bureau alleges that Google tied its ad tech tools together, limiting competitors’ access to advertising inventory and dictating terms to publishers, effectively locking them into Google’s ecosystem. Google denies these claims, stating that its tools support businesses of all sizes and offer significant market choice.
This case will also test recent amendments to Canada’s Competition Act, which expanded regulators’ powers to address market dominance. New provisions allow penalties of up to $10 million for abuse of dominance or three percent of a company’s global revenue. However, experts caution that even a successful case may not immediately reduce Google’s influence due to its vast data holdings and entrenched market position.
For Canadian businesses, the stakes are high. The bureau argues that Google’s practices have inflated advertising costs while restricting publishers’ ability to monetize their content. A favorable outcome could open the market to more competition, lowering costs and offering more options for advertisers and publishers alike. However, the case’s resolution may take years, as both sides prepare to present evidence before the Competition Tribunal.
