Ad Tech: European Media Sues Google for $2.3 Billion
A group of 32 European media companies, including media giants Axel Springer and Schibsted, filed a €2.1 billion ($2.3 billion) lawsuit against tech giant Google on Wednesday.
The lawsuit alleges that Google’s practices in digital advertising have harmed the companies financially and violated European antitrust laws.
“The media companies involved have incurred losses due to a less competitive market, which is a direct result of Google’s misconduct,” a statement issued by their lawyers, Geradin Partners and Stek said.
The media groups claim that Google’s dominant position in the ad tech market has resulted in unfair competition, leading to significant financial losses for them.
“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,” the lawyers said.
The lawsuit comes amid increased scrutiny of Google’s ad tech business by antitrust regulators around the world. The European Commission charged Google with anti-competitive practices last year, and the French competition authority fined the company €220 million in 2021 for similar violations.
Analysts believe that, if successful, the lawsuit could force Google to change its practices and offer more competitive pricing in the ad tech market.
Also Read: UK: Google pushes for antitrust action against Microsoft
However, Google refutes the allegations, calling the lawsuit “speculative and opportunistic.”
“Google works constructively with publishers across Europe. … (Our advertising tools) adapt and evolve in partnership with those same publishers,” the company maintained.
This lawsuit reflects the growing concerns of media companies worldwide regarding the dominance of Big Tech in online advertising.
Google currently holds the largest share of the global digital advertising market, raising concerns about fair competition and revenue distribution.
The media group chose to file the lawsuit in the Netherlands due to the country’s established reputation for handling antitrust damages claims in Europe. This avoids the need for multiple legal proceedings across different European nations.
The lawsuit includes media companies from Austria, Belgium, Denmark, Finland, Hungary, the Netherlands, Norway, Poland, Spain, and Switzerland.
Some notable names involved include Krone (Austria), DPG Media and Mediahuis (Belgium), TV2 Danmark A/S (Denmark), Sanoma (Finland), Agora (Poland), Prensa Iberica (Spain), and Ringier (Switzerland).
