Canada's Competition Bureau has filed a lawsuit against Google, alleging that the tech giant has engaged in anti-competitive practices in its online advertising business. The Bureau claims that Google has abused its dominant market position by illegally linking two advertising tools, which has distorted ad auctions and favored its own products.

The lawsuit, submitted to the Competition Tribunal, seeks to require Google to sell two of its advertising technology tools and pay a fine of up to 3% of its global revenue. The Bureau’s investigation found that Google’s conduct has hindered competition, stifled innovation, and increased advertising costs. In response, Google has denied the allegations, stating that the complaint "ignores the intense competition" in the online advertising market.

The case focuses on online web advertisements, which are purchased and sold through automated auctions on digital platforms. Google is the largest provider of these platforms in Canada, boasting an estimated market share of 90% in publisher ad servers, 70% in advertiser networks, and 50% in ad exchanges. The Bureau's investigation indicated that Google has leveraged its dominant position to exclude competitors and solidify its central role in online advertising.

Google has 45 days to respond to the tribunal. This case represents the latest challenge in a series of regulatory issues faced by Google, including a recent demand from the US Justice Department to divest its Chrome web browser. The outcome of this case could have significant implications for the online advertising market in Canada and beyond.