Nico Rosberg lapped with a best time of one minute 34.274 seconds.
Lewis Hamilton won last year's race but team mate and title rival Nico Rosberg took pole position.
Nico Rosberg's third win this season took his career tally to 11, and cut Hamilton's overall lead to 10 points.
Bernie Ecclestone stressed on simplifying the rules so that everyone could understand them.
Ferrari's Vettel will line up in third place with Massa being on fourth for Williams.
Mark Webber had been critical of the direction the sport was taking even before he moved to sportscars.
Red Bull are feeling far from bullish as Formula One descends on their home Austrian circuit in search of excitement this weekend.
Hamilton puts up a dominant show to win his fourth Canadian Grand Prix; Rosberg second.
Mercedes enters the weekend 1-2 in the championship race, with Hamilton holding a 10-point lead over Rosberg.
Mercedes blew up Hamilton's chances after a needless pitstop; Rosebrg only 4th driver to claim Monaco hat-trick.
Rosberg, winner from pole for the past two years in the principality, qualified second.
Lewis Hamilton ends rumours of Ferrari move by signing 3-year $ 140 million extension with Mercedes.
With a win at the Spanish GP, Rosberg reduced the Formula One world championship lead to 20 points.
Rosberg ended teammate's qualifying stranglehold on Saturday when he secured his first pole position of the season.
Organisers said in a statement it would "condense the season," which finishes in November.
It was a high-scoring thriller but Madrid managed to hang on to their lead till the referee's whistle.
Mick made his single-seater debut on Saturday with the world's media in attendance.
Hamilton finished first, ahead of Ferrari's Kimi Raikkonen and his Mercedes teammate Nico Rosberg.
Lewis Hamilton took the fourth successive pole this season; Sebastian Vettel to start second.
Rosberg topped the timesheets with a best time of one minute 34.647 seconds on soft tyres.
The hostess, graduate of Shanghai Institute of Visual Art, said that the incident has been blown out of proportion.
Hamilton has won 8 of last 10 races and Rosberg has been unable to assert himself in qualifying either this year.
The Mercedes pair pulled clear of Sebastian Vettel's Ferrari right at the start of the race.
Hamilton, unbeaten in qualifying so far this year, lapped in one minute 35.782 seconds.
Mercedes are now fully aware they have a real title fight on their hands.
Motorsport's governing body has given a lukewarm response to Ecclestone's suggestion.
Hamilton, who won the first of his two titles with McLaren in 2008, is one of the three highest paid drivers in the sport.
Ferrari last won a race way back in May 2013 in Spain.
Sebastian Vettel proved Ferrari's impressive early-season form was no fluke with a solid second place.
Red Bull has warned that the team could pull out of F1 unless changes were made to the current regulations.
For Sebastian Vettel the podium spot felt like a victory on his Ferrari debut in the Australian grand prix.
Lewis Hamilton beat Nico Rosberg in a one-two finish for Mercedes at the Australian Grand Prix on Sunday.
The Briton recorded a fastest lap of one minute 26.327 seconds, trouncing Rosberg by nearly six-tenths of a second.
Besides driver safety, F1 has been rocked over the last 12 months by its latest monetary crisis.
Schumacher's son Mick finished second in the German kart championship last season.
Nico Rosberg says he is ready to take on champion Mercedes teammate Lewis Hamilton.