Google to Face £13.6bn Advertising Lawsuit in UK Court
Google is set to face a £13.6 billion lawsuit in the UK, alleging that the tech giant wields excessive power in the online advertising market. The case, brought forth by a group known as Ad Tech Collective Action LLP, accuses Google of engaging in anti-competitive behavior that has resulted in financial losses for online publishers in the UK. Despite efforts by Google’s parent company Alphabet to have the legal action dismissed, the Competition Appeal Tribunal in London has ruled that the case will proceed to trial.
Former Ofcom director and current partner at Ad Tech Collective Action, Claudio Pollack, emphasized the significance of the decision, stating, “This is a decision of major importance to the victims of Google’s anti-competitive conduct in adtech.” On the other hand, Google’s legal director, Oliver Bethell, has dismissed the lawsuit as “speculative and opportunistic,” vowing to vigorously oppose it.
The lawsuit revolves around advertising technology, or adtech, which plays a pivotal role in determining the online ads users see and how much revenue publishers generate from them. With digital advertising spend reaching $490 billion in 2021, the industry holds immense value, particularly for Google due to its strong presence in web search. At the heart of the claim is the allegation that Google is exploiting its dominance by prioritizing its own products and services over those of its competitors, resulting in diminished earnings for publishers and exorbitant fees.
While the legal battle unfolds, the timeline for resolution remains uncertain, with no court date scheduled as of now. The case operates on an opt-out basis, meaning all relevant UK publishers are automatically included unless they choose to opt out. Funding for the lawsuit is provided by a third party, with participating UK publishers exempt from bearing any costs.
This development comes amidst ongoing regulatory scrutiny of Google’s adtech operations by authorities in the UK, Europe, and the US. The tech giant has already faced substantial fines from the European Commission for anticompetitive practices. As the lawsuit progresses, the outcome could have far-reaching implications for the online advertising landscape and the balance of power within the industry.
