Canada’s Competition Bureau has initiated legal proceedings against Google, alleging anti-competitive behaviour in the online advertising technology services market.

The bureau’s investigation revealed that Google, the largest ad tech provider in Canada, has misused its dominance to maintain and strengthen its market control.

Ads are typically bought and sold through automated auctions using sophisticated ad tech tools.

By forcing market participants to use its ad tech tools, Google limits competition and disrupts fair market practices.

The bureau has filed an application with the Competition Tribunal to address these practices, which it believes are ‘harmful’ to Canadians and the competitive landscape.

The bureau’s application includes a series of remedies, such as compelling Google to divest two of its ad tech tools.

It also includes imposing a financial penalty to enforce compliance with the Competition Act and prohibiting Google from continuing its alleged anti-competitive practices.

In 2020, the Competition Bureau launched an investigation to determine if Google was engaging in anti-competitive practices in the online ads industry, reported Reuters.

The investigation was expanded in 2024 to cover Google’s advertising technology services.

According to the bureau’s findings, Google has engaged in practices such as unlawfully tying its several ad tech tools together and leveraging its position to distort auction dynamics.

These actions include giving its tools preferential access to ad inventory, taking negative margins to undercut rivals, and setting terms that disadvantage its competitors.

The bureau argues that Google’s conduct has also hindered competition, driven up advertising costs, stifled innovation, and diminished publishers’ revenue streams.

In response to the compliant, Google said the Canada’s Competition Bureau complaint “ignores the intense competition where ad buyers and sellers have plenty of choice and we look forward to making our case in court”.

Global Ads vice president Dan Taylor said: “Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers.”