Canada Takes Legal Action Against Google for Alleged Ad Tech Monopoly

Canada’s competition authority files a complaint against Google, aiming to dismantle its monopoly over online ad technology, which mirrors ongoing antitrust lawsuits in the U.S. and highlights a broader trend of scrutiny on big tech firms.

Canada’s Competition Bureau has launched a significant antitrust complaint against Google, alleging that the tech giant has established a monopoly over the country's online advertising sector. The agency claims that Google controls between 40% to 90% of four major online advertising technology services in Canada.

The complaint, filed on Thursday, targets two of Google's principal advertising technology services. It seeks to compel the company to divest these parts of its business. This move aligns with a growing wave of scrutiny against large tech firms worldwide, as they face increased pressure to comply with antitrust regulations.

In its statement, the Competition Bureau accused Google of abusing its market power by leveraging its dominance in ad software, auction markets, and ad display services. This behavior, the Bureau asserted, restricts competitors from adequately vying in the marketplace and locks clients into using Google's tools, thereby entrenching its dominance.

The lawsuit follows a similar path to an antitrust case currently filed in the United States against Google—part of a wider initiative that has seen multiple U.S. lawsuits targeting the company's business practices since 2020. At the same time, Canada aims to employ new legislation to address the negative impacts of social media, advocating for tech companies to financially support traditional news institutions.

As both countries grapple with the complexities of tech regulation, this action by Canada highlights the escalating concerns surrounding corporate monopolies and the implications for market competition and fair practices in the digital economy.