Google to Face £13.6bn Lawsuit Over Alleged Adtech Market Dominance

June 05, 2024 at 5:36:10 PM

TL;DR Google must face a £13.6bn lawsuit alleging it has too much power over the online advertising market, a court has ruled. The case, brought by Ad Tech Collective Action LLP, claims Google's anti-competitive behavior caused UK online publishers to lose money. Google's attempts to dismiss the case were rejected, and it will now go to trial. The lawsuit alleges Google engaged in self-preferencing, leading to reduced income for publishers and high fees.

Google to Face £13.6bn Lawsuit Over Alleged Adtech Market Dominance

Google faces a £13.6bn lawsuit alleging it holds excessive power over the online advertising market. The case, initiated by Ad Tech Collective Action LLP, claims Google's anti-competitive behavior caused UK online publishers to lose revenue. Alphabet, Google's parent company, labeled the case "incoherent" but the Competition Appeal Tribunal in London has allowed it to proceed to trial.

Key Points

  • Allegations: Google is accused of anti-competitive practices, specifically "self-preferencing," which allegedly reduces income for websites and imposes high fees on publishers.
  • Legal Proceedings: The case will now go to a full trial, a significant step for those claiming to be victims of Google's conduct in adtech.
  • Google's Response: Google's legal director, Oliver Bethell, described the lawsuit as "speculative and opportunistic" and vowed to oppose it vigorously.
  • Industry Impact: Ad Tech Collective Action highlighted that digital advertising spend reached $490 billion in 2021, emphasizing the financial stakes involved.
  • Case Details: The lawsuit is opt-out, including all relevant UK publishers unless they choose otherwise, and is funded by an unknown third party. UK publishers involved will not bear costs to participate.
  • Regulatory Scrutiny: Google is also under investigation by regulators in the UK, Europe, and the US for its adtech business and has faced significant fines from the European Commission for similar anti-competitive behavior.

The case has already taken eighteen months to reach this stage, and no court date has been set, indicating a potentially lengthy legal battle ahead.

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