European media groups sue Google for $2.3bn
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Publishers, including Axel Springer, allege Google ‘abused its dominant position’ in digital ad-tech, in lawsuit
Alphabet’s Google faced a €2.1bn ($2.3bn) lawsuit on Wednesday from 32 media groups, including Axel Springer and Schibsted. The lawsuit alleges that these groups suffered losses due to Google’s practices in digital advertising.
Media groups from Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, Hungary, Luxembourg, the Netherlands, Norway, Poland, Spain, and Sweden are joining forces to take action against Google, as antitrust regulators increase scrutiny on the tech giant’s ad-tech business.
According to a statement from their legal representatives at Geradin Partners and Stek, the media companies involved have suffered financial losses due to a less competitive market, which they attribute to Google’s actions. They argue that without Google’s abuse of its dominant position, these companies would have generated significantly higher advertising revenues and paid lower fees for ad tech services. The lawyers emphasize that these additional funds could have been used to enhance the European media landscape.
They referenced the French competition authority’s €220m fine against Google in 2021, along with the European Commission’s charges from last year, to support their collective claim.
DA Davidson & Co analyst Gil Luria suggested that if regulatory scrutiny continues, Google might have to adjust its practices and offer more consistent, predictable pricing to advertisers.
Luria also noted that the lawsuit coincides with a time when Google’s core advertising business is facing a significant challenge from the transition to generative AI chat.
In response, a Google spokesperson stated that the company opposes the lawsuit, describing it as “speculative and opportunistic.”
Google collaborates with publishers throughout Europe, and our advertising tools develop in tandem with these partnerships.
Last year, Google expressed disagreement with EU antitrust charges related to its ad tech business, which operates on both the buy-side and sell-side of the supply chain.
Publishers globally have expressed concerns about the growing dominance of Big Tech in advertising, leading to a decline in their revenue share. Analysts consider Google the most dominant digital advertising platform globally.
The group stated that they chose to file the lawsuit in a Dutch court due to the country’s status as a prominent jurisdiction for antitrust damages claims in Europe. They also aimed to avoid multiple claims in various European countries.
Other members of the group include Austria’s Krone, Belgian groups DPG Media and Mediahuis, Denmark’s TV2 Danmark A/S, Finland’s Sanoma, Poland’s Agora, Spain’s Prensa Iberica, and Switzerland’s Ringier.
