Alphabet's Google finds itself embroiled in a legal battle as 32 media groups, including prominent names like Axel Springer and Schibsted, filed a $2.3 billion lawsuit against the tech giant. The lawsuit alleges that the media companies suffered significant losses due to Google's practices in digital advertising.
The lawsuit, which spans multiple European countries including Austria, Belgium, Spain, and Sweden, accuses Google of creating a less competitive market, leading to financial damages for the media groups involved. This legal action comes amidst increasing scrutiny of Google's ad tech business by antitrust regulators, both in Europe and beyond.
Citing previous regulatory actions against Google, including a $239 million fine by the French competition authority and antitrust charges by the European Commission, the media groups argue that Google's misconduct has directly impacted their businesses. The lawsuit underscores the growing discontent among publishers over Big Tech's dominance in digital advertising, with Google being recognized as the most dominant platform in the world by analysts.
In response to the lawsuit, Google issued a statement opposing the claims, describing them as "speculative and opportunistic." The company reiterated its disagreement with previous EU antitrust charges related to its ad tech business, where it operates on both the buy-side and sell-side of the supply chain.
The media groups opted to file the lawsuit in a Dutch court, citing the country's reputation as a key jurisdiction for antitrust damages claims in Europe. This decision aims to consolidate legal proceedings and avoid multiple claims in different European countries.
Among the plaintiffs, Axel Springer stands out as a leading European media company, known for its diverse portfolio of publications and digital ventures. Other media groups joining the lawsuit represent a wide range of industries and regions, collectively seeking accountability from Google for alleged anticompetitive practices. The legal action against Google reflects broader concerns within the publishing industry regarding the growing influence of Big Tech on advertising revenues. As digital advertising continues to evolve, publishers are increasingly advocating for fair competition and regulatory oversight to safeguard their interests and ensure a level playing field.
As the lawsuit unfolds, it is poised to have significant implications for the future of digital advertising and the relationship between tech giants and media companies worldwide. The outcome of this legal battle will be closely watched by stakeholders across the industry.
