Google ordered to face £13.6 billion lawsuit over ad dominance
Google has been directed by a UK court to face a £13.6bn lawsuit over its alleged excessive control of the online advertising market. According to Bloomberg, the legal action was initiated by Ad Tech Collective Action LLP, a group claiming that Google's anti-competitive behavior has resulted in financial losses for UK online publishers. Despite Alphabet, Google's parent company, dismissing the case as "incoherent," the Competition Appeal Tribunal in London has ruled that the trial can proceed.
Allegations by Ad Tech Collective Action
Ad Tech Collective Action alleges that Google is exploiting its dominance in the online advertising market, a sector that saw a $490 billion spend in 2021. The group accuses Google of "self-preferencing" or promoting its own products and services more prominently. This practice allegedly results in publishers earning less from ads they host while paying "very high" fees. Former Ofcom director Claudio Pollack, now a partner in Collective Action, expressed readiness to work with legal and economic advisors for compensation.
Google's response to the lawsuit
Google's legal director, Oliver Bethell, has labeled the lawsuit as "speculative and opportunistic," pledging to "oppose it vigorously and on the facts." The case centers around advertising technology or adtech, which determines which online adverts people see and their cost to publishers. Despite the court ruling, no trial date has been set yet, indicating that resolution may take some time.
Details and implications of the lawsuit
The lawsuit against Google is an opt-out case, meaning all relevant UK publishers are automatically included unless they choose to opt out. The legal action, which has already taken 18 months to reach this stage, is being funded by an unidentified third party. Importantly, UK publishers who are part of the claim will not have to bear any costs to participate in this potentially landmark case.
