After the US, Canada’s Competition Bureau wants to break up Google, to target ad business

Canada’s Competition Bureau has taken a bold step against Google, filing a lawsuit to dismantle the company’s advertising technology operations. The announcement, made on Thursday during the US Thanksgiving holiday, follows an extensive investigation into Google’s dominance in programmatic web advertising. The watchdog claims the tech giant has misused its market power to stifle competition and maintain its leading position.

The Bureau’s investigation alleges that Google favours its own tools in accessing online ad inventory, effectively sidelining competitors. The complaint also accuses the company of manipulating terms for customers to restrict their ability to work with rival ad tech platforms and even taking financial losses in some deals to undermine competition.

Seeking remedies for alleged market manipulation

To address these concerns, the Competition Bureau is pushing for Google to divest two of its advertising technology tools. Additionally, it has called for financial penalties to be imposed on the company for its alleged anticompetitive behaviour. The watchdog argues that Google’s actions have harmed advertisers, publishers, and consumers by limiting choice and distorting the advertising ecosystem.

Matthew Boswell, Canada’s Commissioner of Competition, stated that Google’s conduct has prevented fair competition, locking advertisers and publishers into its ecosystem at the expense of rivals. He emphasised that the case aims to halt these practices and address their harmful effects on Canada’s digital advertising landscape.

Google denies allegations, promises to fight back

Google has denied the accusations, arguing that its advertising tools support a competitive marketplace. The company, in a statement to Reuters, claimed the Competition Bureau’s case disregards the intense competition in the sector, where advertisers and publishers have plenty of options. Dan Taylor, Google’s Vice-President of Global Ads, separately defended the company’s tools, stating they empower businesses to reach customers effectively while helping websites and apps sustain their content.

Google has pledged to contest the case in court, asserting that its practices benefit the broader digital ecosystem rather than harm it. The company’s legal team is preparing to counter the Bureau’s allegations.

An international spotlight on Google’s Ad business

This legal challenge comes as Google faces a similar battle in the United States. The US Department of Justice recently concluded its trial to dismantle Google’s advertising business, with a ruling expected soon. The Canadian case adds to mounting pressure on the tech giant as global regulators scrutinise its advertising dominance.

As Canada’s Competition Bureau pursues its lawsuit, the outcome could have far-reaching implications for the digital advertising industry, potentially reshaping how tech giants operate in global markets.