The legal action is over online web advertising, the watchdog said.
Google is being sued in Canada over alleged anti-competitive conduct in its online web advertising services.
Canada’s Competition Bureau said it wants the tech giant to sell off two of its ad tech services, pay a penalty, and stop engaging in anti-competitive practices.
It added that such action is necessary because an investigation into Google found that the company “unlawfully” tied together its ad tech tools to maintain its dominant market position.
The matter is now headed for the Competition Tribunal, a quasi-judicial body that hears cases brought forward by the competition commissioner about non-compliance with the Competition Act.
‘Google has abused its dominant position’
The bureau is asking the tribunal to order Google to sell its publisher ad server, DoubleClick for Publishers, and its ad exchange, AdX. It estimates Google holds a market share of 90 per cent in publisher ad servers, 70 per cent in advertiser networks, 60 per cent in demand-side platforms and 50 per cent in ad exchanges.
This dominance, the bureau said, has discouraged competition from rivals, inhibited innovation, inflated advertising costs and reduced publisher revenues.
“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,” Matthew Boswell, Canada’s competition commissioner, said in a statement.
Google maintains the online advertising market is a highly competitive sector.
Dan Taylor, Google’s vice president of global ads, said in a statement that the bureau’s complaint “ignores the intense competition where ad buyers and sellers have plenty of choice.”
The statement added that Google intends to defend itself against the allegation.
