Canada Sues Google Over Anti-Competitive Ad Practices

Competition | Nov 28, 2024

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Canada's Competition Bureau Sues Google for Anti-Competitive Practices in Online Advertising

The US, UK, and EU are finally getting tougher on Google's search monopoly, and the Competition Bureau of Canada is now suing Google) too for anti-competitive behaviour that unfairly blocks competition and maintains control over core tools used by advertisers and publishers.  The Bureau says Google's unfair practices costs advertisers and publishers which hinder the Canadian economy and restrict innovation.

What’s Google Being Accused Of?

The area of focus in this case is Google's advertising tech stack which is a series of tools that connects buyers and sellers of advertisements that Google controls to dominate the the sector.  Google allegedly forces businesses to use its tools by making them work better with Google Search than any other competitor's tools.

See:  DOJ Wants to Break Up Google’s Search Monopoly

They also prioritize its own products in ad space auctions, and restrict publishers from working freely with other platforms, limiting the competition while boosting their control.  At the end of the day, anti-competitive practice forces advertisers to pay higher costs which are passed onto consumers who pay higher prices, hurting Canadian businesses and consumers.

What's Next?

The Bureau has taken the case to the Competition Tribunal and is asking them to force Google to sell parts of its advertising tech business to create a more open market.  They also are asking Google to stop these anti-competitive practices and pay financial penalties to ensure compliance with Canadian competition laws.  Google of course disagrees and plans to defend itself in court, saying there's a lot of competition in online advertising and that businesses have many options.

Outlook

This is a big case for Canada who has increased efforts to address monopolistic practices in the digital economy.

See:  Competition Act Amendments and What It Means for Fintech

If the Competition Bureau, it will impact how Google operates its ad tech business in Canada hopefully lowering costs for advertisers while increasing revenue for publishers, and spur more innovation and competition in the market.  Does this case smell similar to the Canadian banks and the need to strengthen competition in the financial sector?

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