Competition Bureau suing Google, wants company to sell off two advertising services

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The Competition Bureau is suing Google over alleged anticompetitive conduct in the tech giant’s online advertising business and wants the company to sell off two of its services and pay a penalty.

Tara Deschamps, The Canadian PressEquity analyst Brad Erickson discusses Alphabet's solid Q3 earnings amid Google's antirust lawsuit.

The Thursday announcement ratchets up its investigation into Google and the world of online advertising, which largely amounts to ads shown to people when they visit websites. These tools are collectively known as the ad tech stack, which the bureau alleges Google has “near-total control of” because it owns four of the largest online advertising technology services used in Canada: DoubleClick for Publishers, AdX, Display & Video 360 and Google Ads.

However, Dan Taylor, Google’s vice-president of global ads, maintains it is a “highly competitive sector.” It has also demanded the company pay a monetary penalty equal to three times the value of the benefit it derived from anticompetitive practices or “if that amount cannot be reasonably determined,” three per cent of Google’s worldwide gross revenues.

The bureau’s allegations were developed during a multi-year investigation that dates back to at least 2021, when it successfully sought a court order requiring it to provide documents related to its online advertising business. It achieved a second, similar order earlier this year.

 

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