Canada’s Competition Bureau has launched a significant lawsuit against Google, alleging the tech giant engaged in anti-competitive conduct to secure its dominance in the online advertising ecosystem. The bureau, a federal watchdog responsible for enforcing antitrust laws, has filed an application with the Competition Tribunal, accusing Google of manipulating its advertising tools to suppress competition and consolidate its market supremacy.

The case revolves around Google’s ad technology tools, which are pivotal in facilitating automated auctions for digital ad inventory — the virtual spaces publishers sell to advertisers. The Competition Bureau alleges that Google has been leveraging its dominant position in the ad tech sector to influence the outcome of these auctions by favoring its own tools. This practice, the bureau claims, has stifled innovation, excluded competitors, and unfairly skewed the dynamics of the Canadian digital advertising market.

According to the bureau’s findings, Google has linked two of its ad tech tools in ways that prevent rivals from gaining a foothold, effectively creating a stranglehold on the ad tech stack — the suite of technologies used to buy, sell, and manage digital advertisements. The bureau’s investigation revealed that these tactics were not incidental but rather part of a calculated strategy spanning several years.

“Google’s near-total control of ad tech is not the result of superior innovation or fair competition,” stated the bureau in its announcement. “It is the outcome of deliberate and systematic actions designed to entrench itself at the center of online advertising.”

The agency is seeking decisive remedies from the Competition Tribunal, including an order requiring Google to divest two of its core ad tech tools. Additionally, it is calling for Google to pay a fine amounting to as much as 3% of its global revenue — a penalty intended to underscore the importance of adhering to Canada’s competition laws and to deter future anti-competitive practices.

Google, however, has vehemently denied the allegations, asserting that its ad tech tools operate within a fiercely competitive environment where buyers and sellers have abundant choices. Dan Taylor, Google’s vice president of global advertising, defended the company’s practices, stating that its tools are designed to empower businesses of all sizes and enable websites and apps to fund their content effectively.

“We look forward to making our case in court,” Google said in a statement, emphasizing its belief that the claims lack merit.

This lawsuit is the latest in a series of regulatory challenges Google faces globally. Just a week prior, the U.S. Department of Justice, along with several states, demanded that Google divest itself of Chrome, the world’s leading web browser, as part of broader measures to curb its dominance in online search and advertising.

The Canadian Competition Bureau’s action highlights growing concerns among regulators worldwide regarding the immense influence of tech giants like Google in digital markets. With the tribunal giving Google 45 days to respond, the case is set to mark a crucial chapter in the ongoing debate over fair competition in the digital age.

This legal battle underscores the broader global push for greater accountability from dominant technology firms, with Canada now joining a growing list of nations challenging the practices of Silicon Valley’s most powerful players.