Google is facing a multibillion-pound lawsuit in the UK following allegations of anti-competitive behavior in the advertising technology market. The Competition Appeal Tribunal has upheld a £13.6 billion claim by the Ad Tech Collective Action LLP group, which accuses Google of causing financial losses to UK publishers. Ad tech refers to a series of tools that facilitate the sale of online ads between publishers and advertisers. This market has become highly profitable, reaching over $490 billion in 2021.
The Ad Tech Collective Action claims that Google has abused its dominant position in the adtech market by favoring its own products and services over those of its competitors. This limited competition has prevented publishers from obtaining higher prices for their impressions. The group believes that Google’s practices have hindered healthy competition, causing financial harm to UK online publishers.
In response to the court’s decision, Google has described the case as “incoherent” and labeled the lawsuit as “speculative and opportunistic.” Oliver Bethell, legal director at Google, stated that they will vigorously oppose the claim. However, Claudio Pollack, a partner at Ad Tech Collective Action, insists that Google will have to answer for its practices in a full trial.
This legal claim holds significant importance for the victims of Google’s alleged anti-competitive conduct in the adtech market, particularly the UK publishing market. The group intends to work with legal and economic advisers to secure compensation for the years during which competitive outcomes were not achieved in relevant markets.
The Ad Tech Collective Action lawsuit is an “opt-out” claim, meaning it includes all relevant UK publishers unless they choose to opt out. The group assures publishers that the claim is fully funded, relieving them of any financial burden if they decide to join.
Google emphasizes its constructive partnerships with publishers in the UK and Europe, highlighting that its advertising tools, along with those of its adtech competitors, enable websites and apps to fund their content. According to Mr. Bethell, businesses of all sizes can reach new customers through adtech services that adapt and evolve in collaboration with publishers.
This lawsuit adds to the growing legal scrutiny faced by Google regarding its conduct in the adtech market. Regulators in the UK, United States, and Europe are investigating Google’s activities. The Competition and Markets Authority (CMA) in the UK is currently examining whether Google has abused its dominance in adtech. The investigation, launched in May 2022, focuses on concerns that Google has excluded services offered by rivals and hindered competition by limiting interoperability with third-party publisher ad servers. The CMA’s chief executive, Andrea Coscelli, warns of the potential harm to millions of people who rely on free online information if unhealthy adtech market conduct weakens competition. It could lead to reduced ad revenues for publishers, compromising the quality of their content or forcing them to implement paywalls. Additionally, advertisers may face increased costs, which are passed on to consumers through higher prices for goods and services.
The European Commission has also opened an investigation into Google’s alleged anti-competitive behavior in adtech. Two years after launching the investigation, the commission informed Google that it had breached EU antitrust rules by distorting competition in the advertising technology industry.
In conclusion, Google finds itself facing a significant legal challenge in the UK over allegations of anti-competitive behavior in the adtech market. The outcome of this case could have far-reaching implications for both Google and UK publishers. The ongoing investigations by regulators in the UK, United States, and Europe further highlight the concerns surrounding Google’s conduct in adtech. These investigations aim to ensure fair competition and protect publishers, advertisers, and consumers in an industry that plays a crucial role in funding online content while delivering valuable information to the public.
