In a bold legal move, Canada’s Competition Bureau has filed a lawsuit against Google, accusing the global tech giant of engaging in anti-competitive practices designed to cement its dominance in the digital advertising sector. The lawsuit, lodged with the Competition Tribunal, alleges that Google manipulated the ecosystem of online advertising through a calculated strategy that linked two of its advertising tools in ways that excluded competitors, distorted auctions, and entrenched its control over Canada’s ad tech market.
At the heart of the case is Google’s role in managing the digital ad inventory — the virtual space publishers offer for advertising on their platforms. These transactions are often facilitated through complex, automated auctions run by ad tech tools. The bureau’s investigation claims that Google’s integration of its own ad tech tools unfairly tipped the scales in its favor, pushing rivals out of the market and stifling competition.
According to the Competition Bureau’s findings, these practices were not accidental or coincidental but the result of deliberate and methodical actions taken over several years. By prioritizing its own tools, Google has allegedly created a closed loop within the ad tech stack, forcing advertisers and publishers to rely on its services at the expense of alternative options.
“Through a series of calculated decisions, Google has entrenched itself at the center of online advertising in Canada,” the bureau stated in its lawsuit announcement. “This dominance is not the result of competitive merit but of intentional conduct designed to suppress rivals and maintain control over the market.”
The bureau is seeking an unprecedented order from the Competition Tribunal, asking that Google divest two of its ad tech tools as a remedy for its alleged anti-competitive conduct. Additionally, the watchdog is calling for Google to pay a fine of up to 3% of its global revenue, a substantial financial penalty meant to promote compliance with Canada’s competition laws.
Google has firmly denied the allegations, describing them as a mischaracterization of its role in the advertising industry. In a statement, Dan Taylor, the company’s vice president of global advertising, emphasized the competitive nature of the digital ad market, asserting that advertisers and publishers have plenty of alternatives. “Our advertising tools are designed to help businesses of all sizes reach their customers effectively and enable websites to fund their content,” Taylor said.
This legal challenge comes amid mounting scrutiny of Google’s market power worldwide. Just days before, the U.S. Department of Justice, along with several states, launched its own case demanding that Google divest its Chrome browser and implement measures to curtail its dominance in search and advertising.
The lawsuit highlights a growing global pushback against major tech companies accused of leveraging their scale and resources to suppress competition. With Google given 45 days to respond to the tribunal, the case is set to intensify debates about fair competition, transparency, and accountability in digital markets.
