Sur cette photo d'archive du 14 janvier 2010, un écran d'ordinateur montre le logo de l'entreprise dans les bureaux de Google à Hong Kong. LA PRESSE CANADIENNE/ASSOCIATED PRESS-Kin Cheung
The Competition Bureau is taking legal action against Google, accusing the tech giant of anti-competitive behavior in its online advertising business. The Bureau claims that Google has illegally bundled its advertising tools to maintain a dominant position in the market, which has hurt competition, raised ad prices, and reduced revenues for publishers.
In a statement released on Thursday, the Bureau said that its investigation revealed that Google's practices have stifled innovation and hindered fair competition, ultimately inflating advertising costs. The Bureau’s actions mark a significant step in its probe into Google’s role in the online advertising industry, which involves the buying and selling of ads displayed on websites.
Website owners typically offer ad space to generate income, and ads are sold through automated platforms in real-time auctions. The process involves various tools that manage ad inventory, facilitate purchases, or act as intermediaries. These tools make up what’s known as the "ad tech stack," which the Bureau claims Google controls almost entirely in Canada. According to the Bureau, Google owns four major ad tech services: DoubleClick for Publishers, AdX, Display & Video 360, and Google Ads.
The Bureau asserts that Google had control over more than 200 billion Canadian web ad transactions in 2022, and holds a dominant share in key areas of online advertising: 90% in publisher ad servers, 70% in advertiser networks, 60% in demand-side platforms, and 50% in ad exchanges.
Google’s Vice President of Global Ads, Dan Taylor, disagreed with the Bureau's allegations, arguing that the ad sector is highly competitive. He stated that the complaint overlooks the variety of options available to both buyers and sellers of digital ads, and expressed confidence in defending Google against the charges.
The case is now set to be heard by the Competition Tribunal, which will determine whether Google has violated competition laws. The Bureau is requesting that the Tribunal order Google to sell its publisher ad server, DoubleClick for Publishers, and its ad exchange, AdX. Additionally, the Bureau is seeking a fine equivalent to three times the benefit Google gained from its alleged anti-competitive actions, or, if that amount cannot be determined, three percent of Google’s global revenue.
The Bureau believes that these measures are necessary to curb Google’s control over the ad tech ecosystem, which it says the company has used to strengthen its market power. The Bureau’s investigation uncovered a pattern of behavior it believes was designed to entrench Google’s dominance. This includes allegations that Google restricted access to its ad exchange, forcing publishers to use its ad server for real-time bids, and distorted auction outcomes by giving its own exchange preferential treatment, even at a loss, to disadvantage competitors.
This investigation has been ongoing for several years, beginning in 2021, when the Bureau secured a court order requiring Google to provide documents related to its advertising business. A similar order was issued earlier this year.
News Media Canada, which represents the journalism industry, welcomed the Bureau's actions. Paul Deegan, the organization’s president, emphasized the negative impact of Google’s market power on publishers and advertisers. "It is long past time to end this anti-competitive conduct," Deegan said, calling for greater fairness in the digital advertising landscape.
