Google Canada has formally denied allegations of abusing its market power in a written response to the Competition Bureau’s lawsuit, filed Friday in federal court. The tech giant refuted claims of anticompetitive behavior in its online advertising business and accused the bureau of overstepping its authority and violating the company’s constitutional rights.
The Competition Bureau’s lawsuit, initiated earlier this year, alleges that Google has used its dominant position in the web advertising market to stifle competition, inflate advertising costs, and reduce revenues for publishers. The bureau is seeking a court order requiring Google to divest two of its advertising services and pay a significant penalty.
In its court filing, Google argued that it does not hold a “substantial degree of market power” and denied engaging in any illegal or inappropriate conduct. The company stated that its advertising practices are lawful and beneficial to both advertisers and publishers, fostering innovation and competition in the digital marketplace.
Google also accused the Competition Bureau of violating its constitutional rights, claiming that the bureau’s actions are an overreach of its regulatory authority. The company argued that the lawsuit is based on flawed assumptions and fails to recognize the competitive nature of the online advertising industry.
“Google Canada operates in a highly competitive and dynamic market,” the company stated in its filing. “The Competition Bureau’s allegations are unfounded and ignore the realities of the digital economy. We are committed to complying with Canadian laws and regulations while continuing to provide value to our users, advertisers, and publishers.”
The Competition Bureau’s lawsuit is part of a broader global scrutiny of Google’s advertising practices. Regulators in the United States, European Union, and other jurisdictions have raised similar concerns about the company’s market dominance and its impact on competition.
In a statement, the Competition Bureau defended its actions, emphasizing the need to ensure a fair and competitive marketplace. “Our mandate is to protect competition and innovation in Canada,” the bureau said. “When companies engage in anticompetitive behavior, it harms businesses, consumers, and the economy as a whole. We stand by our allegations and will vigorously pursue this case in court.”
The case is expected to be closely watched by industry stakeholders, as it could set a precedent for how digital platforms are regulated in Canada. Legal experts suggest that the outcome could have far-reaching implications for the tech industry and competition law in the country.