The Canadian Competition Bureau has launched legal action against Google for alleged anti-competitive practices in the online advertising technology sector.
Alphabet Inc (NASDAQ:GOOG) owned Google is accused of abusing its dominant position to maintain control over the advertising technology stack, distorting competition to the detriment of advertisers and publishers in Canada.
The Bureau alleges that Google unlawfully tied its ad tech tools together, gave preferential access to its own tools and set terms that disadvantaged competitors.
It contends that these practices allowed Google to entrench its dominance, stifle innovation, inflate advertising costs, and reduce revenues for publishers.
Competition commissioner Matthew Boswell said: “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.
“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 Bureau said it has been investigating Google’s conduct in this area since 2016.
Google is also facing pressure in the US to sell its Chrome web browser and potentially the Android operating system in order to dismantle Google’s dominance in online search.
This follows Judge Amit Mehta in the US District Court for the District of Columbia finding Google guilty of illegally maintaining a search monopoly.
Chrome, introduced in 2008, commands 67% of the global browser market, while Android powers 71% of smartphones worldwide, according to Statcounter data.
Other major tech players, including Apple Inc (NASDAQ:AAPL, ETR:APC), Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) and Microsoft Corp (NASDAQ:MSFT), are facing antitrust proceedings in major global jurisdictions.