Google is facing a $2.27 billion lawsuit by 32 media groups claiming that the company’s digital advertising practices have led to financial losses.
The publishers, including Axel Springer and Schibsted, are based in various countries across Europe, such as Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, Hungary, Luxembourg, the Netherlands, Norway, Poland, Spain, and Sweden.
The claims. The publishers assert that Google has abused its dominant position in the advertising eco-system causing a decrease in the value of the publishers’ inventory. A statement issued by the media groups’ lawyers Geradin Partners and Stek said:
The media companies involved have incurred losses due to a less competitive market, which is a direct result of Google’s misconduct. Without Google’s abuse of its dominant position, the media companies would have received significantly higher revenues from advertising and paid lower fees for ad tech services. Crucially, these funds could have been reinvested into strengthening the European media landscape.
Google’s response. Google denies the allegations and has described them as “speculative and opportunistic.” Oliver Bethell, Legal Director, Google, told our colleagues at Search Engine Land in a statement:
Google works constructively with publishers across Europe – our advertising tools, and those of our many adtech competitors, help millions of websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers. These services adapt and evolve in partnership with those same publishers. This lawsuit is speculative and opportunistic. We’ll oppose it vigorously and on the facts.
Why we care. The European headwinds into which Google is sailing grow stronger. This lawsuit comes on top of the French competition authority imposing a $238 million fine on Google relating to its ad tech business in 2021, as well as the charges brought by the European Commission last year, both of which are referenced in the media groups’ claim.
Google also faces an ongoing investigation by the U.K.’s Competition and Markets Authority which has instructed it to postpone the deprecation of third-party cookies until its concerns are met.
Additional reporting by Kim Davis
