Google is facing a $2.27 billion lawsuit from 32 media groups that allege the company’s digital advertising practices have led to financial losses.
The publishers, including Axel Springer and Schibsted, are based in several countries in Europe, including Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, Hungary, Luxembourg, the Netherlands, Norway, Poland, Spain and Sweden.
What the lawsuit says. A statement issued by lawyers for media groups Geradin Partners and Stek said:
“The media companies involved have suffered losses due to a less competitive market, which is a direct result of Google’s misconduct.” “Without Google’s abuse of its dominant position, media companies would have received significantly higher advertising revenue and paid lower fees for ad technology services. Crucially, these funds could have been reinvested to strengthen the European media landscape”.
What Google says. Google denies the allegations and called them “speculative and opportunistic”. Reuters. The company said in a statement:
“Google works constructively with publishers across Europe. … (Our advertising tools) adapt and evolve in collaboration with these same publishers.”
Timing The lawsuit follows the French competition authority fining Google $238 million over its ad tech business in 2021, as well as charges brought by the European Commission last year, both related to the claim of the media groups.
dutch court. The group chose to file the suit in a Dutch court because the country is known for handling antitrust damage claims in Europe. This decision helps to avoid dealing with multiple claims in different European countries.
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deep dive. Read our article on antitrust trial updates to learn about Google’s legal battles in the United States, where the US Department of Justice is suing the tech giant.
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