Google, a subsidiary of Alphabet Inc., is facing a 2.1 billion euros ($2.3 billion) lawsuit from 32 media groups, such as Axel Springer and Schibsted. The media groups are alleging losses due to Google’s practices in digital advertising.
The lawsuit comes as antitrust regulators are tightening the grip on Google’s advertising practices. It was initiated by publishers from various European countries like Austria, Belgium, Bulgaria, and more, accusing Google of creating a less competitive market due to its illegal conduct.
The media companies’ lawyers, Geradin Partners and Steck, stated that the losses incurred by the publishers could have been avoided if Google hadn’t abused its dominant position. This could have led to higher advertising revenues for the media companies and lower fees for ad tech services, ultimately benefiting Europe’s media landscape.
The lawsuit is supported by previous actions taken against Google, such as the French competition authority’s fine in 2021 and the European Commission’s complaint last year. Analysts predict that Google may need to adjust its practices and pricing due to increased regulatory scrutiny.
A spokesperson for Google dismissed the lawsuit as “speculative and opportunistic,” emphasizing the company’s collaboration with European publishers to enhance their advertising tools.
Despite Google’s disagreements with antitrust violations, publishers worldwide have expressed concerns about Big Tech’s dominance in advertising and the subsequent decline in their revenue share. Google remains the leading digital advertising platform globally.
The group of media companies chose to file the lawsuit in Dutch courts, citing the country’s reputation for handling antitrust claims effectively in Europe. Companies like Krone, DPG Media, TV2 Danmark A/S, and others are part of the collective seeking legal action against Google.
Source: www.theguardian.com
