Canada sues Google over alleged anti-competitive practices in ads

Canada's Competition Bureau has filed a lawsuit against Alphabet's Google, alleging that the tech giant engaged in anti-competitive behaviour in the online advertising sector.

The application filed by the Bureau before the Competition Tribunal is seeking a court order compelling Google to divest two of its key ad technology tools. The watchdog is also seeking a penalty to ensure Google complies with Canada's competition laws.

Google responded to this claim, saying that the suit "overlooks the incredibly competitive nature of the ad-buying market, with a large number of willing buyers and sellers."

According to Google, "our ad tech tools help websites and apps pay for their content, and help businesses of all sizes connect with new customers." Google VP of Global Ads Dan Taylor said in response to the complaint that he and the company look forward to the opportunity to explain its position in court.

The Competition Bureau initiated investigations into Google in 2020. The agency of competition probed whether or not the company had ever indulged in anti-competitive practices in the advertisement business line online.

The research expanded early this year as it went beyond Google's merely search business to its advertisement technology services. The agency stated that Google has controlled the majority share of the nation's ad tech market with the aid of its allegedly anticompetitive methods, said the Bureau.

This lawsuit comes in tandem with similar antitrust initiatives launched by the US Department of Justice that alleged Google is monopolising the market for publisher ad servers and advertiser ad networks.

Google defended its activities and said the US case was selective as it focused only on one portion of the online advertisement business while ignoring competition in other sectors.

It said the decisions made for its business are legitimate, and that there is competition in the marketplace.

Reuters earlier this year reported Google trying to end an antitrust investigation in the European Union by offering to sell an ad exchange platform. It said European publishers rejected this offer as insufficient to remedy the issues raised by a competition probe.

(With inputs from Reuters)