Google Faces $2.3B Lawsuit from Axel Springer & Other Publishers Over Digital Advertising Practices

Edited by: TJVNews.com

In a bold move against tech giant Google, media conglomerate Axel Springer, alongside 31 other publishers, has filed a staggering $2.3 billion lawsuit, as was recently reported by The New York Post. The lawsuit alleges significant losses incurred by the publishers due to Google’s practices in digital advertising, marking a formidable escalation in the ongoing battle over digital advertising dominance.

The consortium of publishers hails from various European countries, including Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, Hungary, Luxembourg, the Netherlands, Norway, Poland, Spain, and Sweden, according to the Post report. Their unified stance underscores the widespread concern among media entities regarding Google’s influence in the digital advertising landscape.

Europe’s antitrust regulators have already been scrutinizing Google’s ad tech business, and this lawsuit amplifies the pressure on the tech giant. Additionally, the Post report indicated that Google is facing a landmark case in the United States, where it is accused of maintaining a monopoly over search mechanisms.

Axel Springer, renowned for its ownership of Business Insider, stands at the forefront of this legal battle, representing a coalition of 55 brands among the complainants, the report in the Post said. Together, these publishers command over 1 billion monthly visits, emphasizing the significant impact of Google’s alleged misconduct on their revenue streams.

Legal representatives for the media firms, Geradin Partners and Stek Lawyers, highlighted Google’s purported abuse of its dominant position, resulting in a less competitive market and diminished revenues for publishers, according to the information provided in the Post report. They argue that without Google’s misconduct, publishers would have enjoyed higher advertising revenues and lower fees for ad tech services, facilitating greater investments in strengthening the European media landscape.

Citing precedents such as the French competition authority’s hefty fine against Google’s ad tech business in 2021 and the European Commission’s charges from the previous year, the publishers aim to bolster their case for damages, the Post report added.

The lawsuit was filed in the District Court of Amsterdam, strategically chosen as a key jurisdiction for antitrust damages claims in Europe. Google’s legal director, Oliver Bethell, rebuffed the claims, labeling the lawsuit as “speculative and opportunistic,” as was reported by the Post. Bethell asserted that Google would vehemently oppose the lawsuit based on factual grounds.

Google has previously disputed EU antitrust charges related to its ad tech business, emphasizing its constructive collaboration with publishers across Europe. As was noted in the Post report, according to Bethell, Google’s advertising tools, alongside those of its competitors, play a vital role in funding online content and facilitating business outreach.

Back in 2017, the European Union levied a staggering $2.7 billion antitrust fine against Google for market abuse concerning its shopping service. The report in the Post indicated that despite attempts by Google to evade the fine, Europe’s highest court dashed the company’s hopes with a recent ruling, potentially delivering a significant blow to the world’s most widely-used internet search engine.

The shopping case represents just one of three landmark decisions by the EU that collectively resulted in fines totaling approximately $8.94 billion for Google over the last decade, according to the Post. These punitive measures underscore the EU’s commitment to curbing anti-competitive practices and ensuring a level playing field in the digital marketplace.

Across the Atlantic, Google’s legal woes continue, with the US Justice Department spearheading costly litigation against the tech giant. Allegations of illegal monopoly power and consumer harm have been at the forefront of the DOJ’s case against Google. The Post reported that in a pivotal trial last September, Jerry Dischler, Google’s vice president of advertising products, made startling admissions regarding the company’s pricing strategies within its search results. Dischler revealed that Google had quietly raised ad prices to meet revenue targets, resulting in significant hikes for advertisers ranging from 5% to 10%.

Moreover, Dischler’s testimony shed light on Google’s opaque practices in manipulating ad sales metrics to favor its own interests. Despite the DOJ’s efforts to expose these clandestine maneuvers during the trial, prominent anti-monopoly organizations have raised concerns about Google’s continued pursuit of anticompetitive practices, as was indicated in the Post report. In a joint letter to FTC chief Lina Khan and the DOJ’s top antitrust lawyer Jonathan Kanter, 15 advocacy groups called for a coordinated crackdown on Google, citing recent developments such as a reported partnership to embed Google search results within TikTok.

The timing of this partnership, amidst the DOJ’s antitrust trial, raises questions about Google’s commitment to fair competition and transparency. With US District Judge Amit Mehta expected to deliver a verdict in May, the outcome of Google’s legal battles on both sides of the Atlantic will have far-reaching implications for the tech industry’s regulatory landscape and the future of competition in digital markets.