Competition Bureau Sues Google for Anti-Competitive Conduct in Online Advertising in Canada
Ottawa, November 28, 2024 – The Competition Bureau has filed a lawsuit against Google LLC in the Federal Court of Canada, alleging that the company has engaged in anti-competitive conduct in the online advertising market in Canada.
The Bureau alleges that Google has abused its dominant position in the market by engaging in a number of anti-competitive practices, including:
- Tying: Requiring advertisers to use Google’s ad server, DoubleClick for Publishers (DFP), in order to access its vast network of ad space.
- Bundling: Offering discounts to advertisers who purchase multiple Google advertising products, such as search and display ads.
- Exclusive dealing: Preventing advertisers from using competing ad servers or ad exchanges.
The Bureau alleges that these practices have created barriers to entry and expansion for competitors, and have resulted in higher prices for advertisers and lower quality advertising for consumers.
The lawsuit is seeking a number of remedies, including:
- An injunction prohibiting Google from continuing with its anti-competitive conduct.
- A divestiture of Google’s DFP ad server.
- An order requiring Google to pay damages to affected advertisers and consumers.
The Bureau’s investigation into Google’s conduct began in 2022, following a complaint from a group of Canadian advertisers. The investigation found that Google has a dominant position in the online advertising market in Canada, with a market share of over 90%.
The lawsuit is the latest in a series of antitrust actions taken against Google around the world. In 2020, the European Union fined Google €2.4 billion for abusing its dominance in the online shopping market. In 2021, the United States Department of Justice filed a lawsuit against Google, alleging that the company has monopolized the online search market.
The outcome of the Competition Bureau’s lawsuit against Google could have a significant impact on the Canadian online advertising market. If the Bureau is successful, it could lead to increased competition, lower prices for advertisers, and higher quality advertising for consumers.
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