Why Is Canada Suing Google’s Advertising Business? Here’s What Happened!

Canada’s Competition Bureau has initiated legal action against Google, accusing the tech giant of anticompetitive practices in its online advertising business.

The bureau is seeking an order for Google to divest two of its key advertising technology services—DoubleClick for Publishers and AdX—and pay a financial penalty.

Allegations of Market Control

According to the bureau, Google has unlawfully bundled its advertising technology tools to consolidate its dominance in the sector. The Competition Bureau estimates Google’s market share to be around 90% in publisher ad servers, 70% in advertiser networks, 60% in demand-side platforms, and 50% in ad exchanges.

This market control, the bureau alleges, has stifled competition, discouraged innovation, inflated advertising prices, and reduced revenue for publishers.

The case has been referred to the Competition Tribunal, a quasi-judicial body tasked with enforcing Canada’s Competition Act. The bureau argues that Google’s practices force market participants to rely on its ad tech tools, thereby excluding competitors and undermining the competitive landscape.

Matthew Boswell, Canada’s Commissioner of Competition, stated that Google has “abused its dominant position” in online advertising, locking out competitors and distorting fair market practices.

Google’s Response

Google disputes the allegations, claiming the online advertising industry remains highly competitive. Dan Taylor, Google’s Vice President of Global Ads, stated the complaint overlooks the broad range of choices available to advertisers and publishers. Google intends to defend its position against these claims.

U.S. Calls for Stricter Measures Against Google

In parallel to Canada’s lawsuit, U.S. regulators are also targeting Google. The Department of Justice recently proposed breaking up the company to curb its alleged monopoly in online search and advertising. Recommendations include selling its Chrome browser and imposing restrictions on Android to prevent favoritism toward Google’s search engine.

Both cases underscore growing international scrutiny of Google’s practices and its influence in the digital advertising ecosystem.

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