Google was sued Wednesday for $2.3 billion by media giant Axel Springer and 31 other publishers, alleging that the search giant’s digital advertising practices have cost them millions of dollars.
The group’s move, which includes publishers from Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, Hungary, Luxembourg, the Netherlands, Norway, Poland, Spain and Sweden, comes as European antitrust regulators crack down on Google’s ad tech. It was held in the middle of the day. work.
The tech giant also faces a landmark lawsuit in the U.S. asserting its monopoly over search.
Business Insider’s parent company, Axel Springer, and the small publishers responsible for the 55 brands targeted in the complaint receive more than 1 billion visits per month.
Media companies’ attorneys at Geradin Partners and Stek Lawyers said in a statement obtained by the Post that “the media companies involved have suffered losses due to reduced market competitiveness, which is a direct result of Google’s illegal actions.” This is a great result.”
“Without Google’s abuse of its dominant position, media companies would have earned significantly higher revenues from advertising and paid lower fees for ad tech services,” the lawyers added.
“Importantly, these funds could have been reinvested to strengthen Europe’s media environment.”
They cited the opinion of the French competition authority. Approximately $240 million in fines To Google regarding the ad tech business in 2021, European Commission indictment last year to strengthen their group’s claims.
Lawyers said the suit was filed in the Amsterdam District Court, “the leading jurisdiction for antitrust claims in Europe.”
Oliver Bethel, Google’s general counsel, denied the allegations in a statement to the Post, calling “this lawsuit speculative and opportunistic.” We firmly oppose this based on the facts,” Google’s general counsel Oliver Bethell said in a statement to the Post.
“I firmly oppose this based on the facts.”
Google said this last year did not agree The company is suspected of violating EU antitrust laws regarding its ad tech business, which is involved in both the buy and sell sides of the ad tech business.
“Google works constructively with publishers across Europe. Our advertising tools, and those of many ad tech competitors, help millions of websites and apps fund their content and “We enable businesses of all sizes to effectively reach new customers,” Bethel said.
“These services will adapt and evolve in partnership with the same publisher.”
A representative for Axel Springer declined the Post’s request for comment and advised them to contact Geradin instead.
The European Union, which introduced tougher regulations on Big Tech companies than U.S. authorities under the Digital Services Act that took effect earlier this month, also slapped Google with a $2.7 billion antitrust suit in 2017 for market abuse related to shopping services. Fines were imposed for violating the law.
For a year since then, Google has been trying to avoid the fine, but last month Europe’s highest court struck down the Mountain View, Calif.-based company’s last effort to avoid paying, giving it access to the world’s most popular internet search engine. Delivered a potential blow. engine.
The Shopping case is the first of three EU judgments over the past decade that have imposed fines totaling about $8.94 billion on Google.
In the United States, Google faces a similarly costly lawsuit from the Department of Justice, which alleges that the company exercised illegal “monopoly power” and “harmed consumers.”
Jerry Dischler, Google’s vice president of advertising products, said in a lawsuit last September that the company had been quietly raising ad prices within search results to meet revenue targets, and that the stealth changes resulted in , confirmed that advertising rates have been increased from 5% to 10%. Advertiser.
In his bombshell statement, Dischler said Google frequently adjusts ad sales metrics in its ad auctions to determine which ads rank higher in response to user prompts on its search engine. , said it was increasing the minimum required spending to secure fees and rankings.
“We tend not to tell advertisers very much about price changes,” Dischler said on stage.
Despite the Justice Department’s efforts to expose its shady tactics during closely watched investigative trials, several companies, including Demand Progress, the Revolving Door Project, Fight for the Future, and the Technology Surveillance Project, The famous anti-monopoly organization argued that: Google remains ‘fully committed’ to anti-competitive behavior.
A total of 15 groups called for a coordinated crackdown on the giant company, calling for Google’s practices in a letter to FTC Commissioner Lina Khan and top Justice Department antitrust lawyer Jonathan Cantor, obtained by the Post. “It’s even indicative of Justice Department litigation and increased regulatory oversight overseas.” Didn’t block the company. ”
The letter points to three separate recent developments involving the reported partnership. Embed Google search results inside TikTok.
The partnership surfaced last September, amid a Justice Department antitrust case in which lawyers argued that Google relied on such deals to stifle potential competition. .
U.S. District Judge Amit Mehta is scheduled to issue a ruling in May.
with post wire
