Google Canada employees are seen returning to the company's Toronto office after staging a walkout. This photo was taken on November 1, 2018. (THE CANADIAN PRESS/Cole Burston)
Google Canada has dismissed allegations of monopolistic practices in response to the Competition Bureau’s lawsuit over its advertising operations. The tech giant argues that it does not wield excessive control over the digital ad market, pushing back against the bureau’s claims.
In legal filings submitted on Friday, Google and its Canadian division asserted that their market influence is overstated. The bureau's lawsuit accuses Google of engaging in anti-competitive behaviour and seeks to force the company to divest key ad services while imposing hefty financial penalties.
Google challenges the Competition Bureau’s market definition, arguing that the focus on web advertising is too narrow. The company claims the allegations disregard the broader landscape of digital marketing, including mobile apps and connected TV platforms.
“The markets in which Google is alleged to have abused its position are detached from economic reality and lack proper legal analysis,” Google stated in its court submission. The company further contends that the proposed penalty is unconstitutional.
The Competition Bureau, following an investigation dating back to 2021, claims that Google has unfairly linked its ad tech tools to maintain dominance. Digital ads, typically bought and sold via automated auctions, require various tools to manage transactions between publishers and advertisers. Google controls four of Canada’s major ad tech services—DoubleClick for Publishers, AdX, Display & Video 360, and Google Ads. The bureau estimates Google holds a 90% share in publisher ad servers, 70% in advertiser networks, 60% in demand-side platforms, and 50% in ad exchanges.
According to the bureau, Google’s stronghold discourages competition, stifles innovation, inflates advertising costs, and reduces publisher revenue. As a corrective measure, it demands that Google sell DoubleClick for Publishers and AdX.
However, Google rejects these accusations, maintaining that its business operations are neither illegal nor unethical. It argues that the bureau’s assessment isolates web advertising without considering other digital advertising sectors. Google accuses the regulator of fabricating artificial divisions to justify its claims.
Additionally, the company asserts that the proposed financial penalty—three times the alleged ill-gotten gains or 3% of its global revenue—is legally untenable and detrimental to the public interest. Google warns that such punitive measures could deter investment and innovation, ultimately harming consumers rather than protecting market competition.
The Competition Bureau has yet to comment on Google's response. The matter now rests with the Competition Tribunal, a specialized judicial body that oversees cases related to the Competition Act.
Google argues that, contrary to the bureau’s claims, the ad tech industry remains competitive, with strong contenders such as Microsoft, Meta, and Amazon. It highlights that its market share has declined while overall industry performance has surged, service quality has improved, and ad-related costs have stabilized or dropped.
The company warns that if the bureau succeeds in its lawsuit, it could have the opposite effect—hampering competition and slowing innovation in Canada’s digital advertising industry.
