The Canadian antitrust watchdog said it wants the company to sell two of its ad tech services and pay a fine. The case is now heading to the Competition Tribunal, a quasi-judicial body, the bureau said, calling such action against the company necessary.

Canada has filed a lawsuit against US tech giant Google over anti-competitive conduct in the online advertising sector. The Canadian antitrust watchdog said it wants the company to sell two of its ad tech services and pay a fine. The Competition Bureau said an investigation into Google found the company had illegally bundled ad tech tools together to gain a dominant position in the market.

Described the bureau’s action as necessary

The bureau said such action against the company was necessary and said the matter is now going to the Competition Tribunal, a quasi-judicial body. It will hear about non-compliance with the Competition Act. The bureau has recommended the tribunal order Google to sell its publisher ad server,

Google is estimated to have a 90% market share in publisher ad servers, 70% in advertiser networks, 60% in demand-side platforms and 50% in ad exchanges. Competition Commissioner Matthew Boswell said this dominance has discouraged competition from rivals, hindered innovation, increased advertising costs and reduced publisher revenues.

Google called the move unfair

Google rejected the allegations and said competition in the online advertising sector is extremely fierce. Google’s global advertising vice president Dan Taylor said the complaint ignores real competition and the move is unfair. This lawsuit is a big example of how governments are trying to curb the growing influence of big tech companies.

Tension will increase in Canada-USA

Experts believe that if this lawsuit drags on, it could sour Canada-US trade relations. Apart from this, the possibility of such steps being taken in other countries regarding competition in the technology sector may also increase. This move by Prime Minister Justin Trudeau’s government could also affect his equations with US President Joe Biden. On the other hand, Google said that it would defend the allegations against it.