Google is currently embroiled in a legal battle, facing a €2.1 billion lawsuit (equivalent to $2.3 billion) filed by 32 international media groups. The lawsuit alleges substantial economic losses due to Google’s anticompetitive and monopolistic practices in digital advertising.
Among the plaintiffs are renowned names such as Axel Springer, a German media and publishing group; Schibsted, an international media conglomerate of Norwegian origin; Krone, an Austrian newspaper; DPG Media and Mediahuis, Belgian media groups; TV2 Danmark A/S, a Danish television broadcasting services group; Sanoma, a Finnish media and publishing company; Agora, a Polish media group; Prensa Ibérica, a Spanish press group; and Ringier, a Swiss media conglomerate.
The lawsuit was filed in a Dutch court for two main reasons: firstly, due to the Netherlands’ reputation as a key jurisdiction for antitrust damage claims in Europe, and secondly, to avoid multiple lawsuits across various European courts and countries.
Upon the news of the lawsuit, Google’s shares, based in Mountain View, California, dropped by over 2%.
Google’s Growing Dominance in the Advertising Sector The lawsuit comes at a sensitive time in Europe, where international regulators are imposing increasingly stringent rules to uphold fair competition practices and privacy protection. The plaintiff’s attorneys, Geradin Partners and Stek, argue that “the media companies involved have suffered losses due to a less competitive market, which is a direct consequence of Google’s misconduct.”
According to the plaintiffs’ lawyers, without Google’s abuse of its dominant position, media companies would have received significantly higher advertising revenues and paid lower fees for advertising technology services. Essentially, these funds could have been reinvested to strengthen the European media landscape.
To support their claim, the group’s lawyers cited the €220 million fine imposed by the French competition authority against Google for its advertising technology business, as well as charges brought by the European Commission last year.
In response, Google refutes the accusation as “speculative and opportunistic” and asserts that “Google collaborates constructively with publishers across Europe. Our advertising tools adapt and evolve in partnership with these same publishers.”
In conclusion, the legal battle between Google and the media groups highlights the ongoing challenges in the digital advertising landscape, particularly regarding competition and market dominance. As the case unfolds, it underscores the importance of regulatory oversight and fair competition practices in ensuring a level playing field for all stakeholders involved in the digital economy.