NEW DELHI: Alphabet‘s Google faced a lawsuit of 2.1 billion euros ($2.3 billion) filed by 32 media organizations, including Axel Springer and Schibsted, on Wednesday. They allege their losses are due to Google’s digital advertising practices.
The company’s shares in Mountain View, California, dropped by over 2%.
This action, taken by a group consisting of publishers from countries such as Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, Hungary, Luxembourg, the Netherlands, Norway, Poland, Spain, and Sweden, aligns with antitrust authorities’ increased focus on Google’s advertising technology sector.
“The media companies involved have incurred losses due to a less competitive market, which is a direct result of Google’s misconduct,” said the group’s legal representatives, Geradin Partners and Stek.
They argue that without Google’s dominant position abuse, media companies would have gained higher advertising revenue and paid less for ad tech services. These funds could have supported the European media sector’s growth, the lawyers noted.
Their claim is supported by the French competition authority’s 2021 fine of 220 million euros against Google and last year’s European Commission’s charges.
D.A. Davidson & Co analyst Gil Luria mentioned, “If regulatory examinations lead to action, Google might have to modify its practices and offer more stable, predictable prices to advertisers.”
Luria also pointed out that Google’s main ad business is under threat from the rise of generative AI chat.
In response, a Google spokesperson contested the lawsuit, calling it “speculative and opportunistic” and stated, “Google works constructively with publishers across Europe. … (Our advertising tools) adapt and evolve in partnership with those same publishers.”
Google had previously expressed disagreement with the EU’s antitrust charges against its ad tech operations, where it engages in both buying and selling in the advertising supply chain.
Publishers globally have criticized Big Tech’s growing ad market control, which has reduced their revenue share. Analysts identify Google as the leading digital advertising platform.
The lawsuit was filed in the Netherlands by the group, citing the country’s strong reputation for antitrust damage claims in Europe and to prevent multiple lawsuits in different European countries.
The group includes media entities from various countries, such as Austria’s Krone, Belgium’s DPG Media and Mediahuis, Denmark’s TV2 Danmark A/S, Finland’s Sanoma, Poland’s Agora, Spain’s Prensa Iberica, and Switzerland’s Ringier.
(With inputs from agencies)
The company’s shares in Mountain View, California, dropped by over 2%.
This action, taken by a group consisting of publishers from countries such as Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, Hungary, Luxembourg, the Netherlands, Norway, Poland, Spain, and Sweden, aligns with antitrust authorities’ increased focus on Google’s advertising technology sector.
“The media companies involved have incurred losses due to a less competitive market, which is a direct result of Google’s misconduct,” said the group’s legal representatives, Geradin Partners and Stek.
They argue that without Google’s dominant position abuse, media companies would have gained higher advertising revenue and paid less for ad tech services. These funds could have supported the European media sector’s growth, the lawyers noted.
Their claim is supported by the French competition authority’s 2021 fine of 220 million euros against Google and last year’s European Commission’s charges.
D.A. Davidson & Co analyst Gil Luria mentioned, “If regulatory examinations lead to action, Google might have to modify its practices and offer more stable, predictable prices to advertisers.”
Luria also pointed out that Google’s main ad business is under threat from the rise of generative AI chat.
In response, a Google spokesperson contested the lawsuit, calling it “speculative and opportunistic” and stated, “Google works constructively with publishers across Europe. … (Our advertising tools) adapt and evolve in partnership with those same publishers.”
Google had previously expressed disagreement with the EU’s antitrust charges against its ad tech operations, where it engages in both buying and selling in the advertising supply chain.
Publishers globally have criticized Big Tech’s growing ad market control, which has reduced their revenue share. Analysts identify Google as the leading digital advertising platform.
The lawsuit was filed in the Netherlands by the group, citing the country’s strong reputation for antitrust damage claims in Europe and to prevent multiple lawsuits in different European countries.
The group includes media entities from various countries, such as Austria’s Krone, Belgium’s DPG Media and Mediahuis, Denmark’s TV2 Danmark A/S, Finland’s Sanoma, Poland’s Agora, Spain’s Prensa Iberica, and Switzerland’s Ringier.
(With inputs from agencies)
