Canada’s Competition Bureau sues to break up Google’s ad business

Canada’s antitrust watchdog is suing Google to force the breakup of the company’s ad tech unit. In a statement published Thursday, during the US Thanksgiving holiday, the Competition Bureau said a “thorough” investigation had found that Google had abused its dominant position in programmatic web advertising to “maintain and entrench its market power.”

Specifically, the watchdog has accused Google of giving its own tools preferential access to online ad inventory. The Competition Bureau alleges the company also took a financial hit on some transactions in an effort to disadvantage rival platforms, and that it even went so far as dictating the terms by which its own customers could do business with competing ad tech companies.

Among other remedies, the Competition Bureau is seeking to force Google to sell two of its ad tech tools. The agency also wants the company to pay a penalty for its behavior.

Google did not immediately respond to Tech Reader’s request for comment. In a statement it shared with Reuters, Google said the complaint “ignores the intense competition where ad buyers and sellers have plenty of choice.” The tech giant added it is looking forward to arguing its case in court. “Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers,” Dan Taylor, vice-president of Global Ads at Google, said separately.

“The Competition Bureau conducted an extensive investigation that found that Google has abused its dominant position in online advertising in Canada by engaging in conduct that locks market participants into using its own ad tech tools, excluding competitors, and distorting the competitive process,” said Matthew Boswell, Canada’s Commissioner of Competition.

“Google’s conduct has prevented rivals from being able to compete on the merits of what they have to offer, to the detriment of Canadian advertisers, publishers and consumers. We are taking our case to the Tribunal to stop this conduct and its harmful effects in Canada.”

The case comes as Google attempts to fend off a separate attempt by the US Department of Justice to break up the company’s ad business. The two sides made their closing arguments in that case on Monday, and a decision could be announced as early as next week.