Google facing a £13bn advertising lawsuit

The recent ruling by the Competition Appeal Tribunal in London that Google must face a £13.6bn lawsuit alleging it has too much power over the online advertising market has sparked a debate about the tech giant’s dominance in the industry. The case, brought by Ad Tech Collective Action LLP, accuses Google of behaving in an anti-competitive way that has led to online publishers in the UK losing money.

Google’s parent company, Alphabet, has dismissed the lawsuit as “incoherent” and “speculative and opportunistic,” but the court has decided that the case can proceed to trial. This decision has been hailed as a major victory for the victims of Google’s alleged anti-competitive conduct in the adtech industry.

The crux of the matter lies in the accusation that Google is abusing its dominance in the online advertising market by engaging in “self-preferencing” – promoting its own products and services over those of its rivals. This alleged behavior has resulted in publishers receiving less income for the ads they host and having to pay high fees to Google.

Ad Tech Collective Action is seeking compensation for the years during which the UK publishing market did not operate competitively due to Google’s practices. The case is opt-out, meaning all relevant UK publishers are automatically included unless they choose to opt out. It is being funded by a third party, and participating publishers will not have to pay any costs.

This lawsuit comes amidst ongoing regulatory scrutiny of Google’s adtech business in the UK, Europe, and the US, with the tech giant already facing hefty fines from the European Commission for anticompetitive behavior. The outcome of this trial will have significant implications for the future of the online advertising industry and Google’s position within it.

In conclusion, the ruling that Google must face this lawsuit underscores the growing concerns about the tech giant’s market dominance and its impact on competition in the adtech industry. It remains to be seen how this legal battle will unfold and what implications it will have for the broader tech industry.

Back To Top