Google is facing a massive £13.6bn lawsuit alleging it has too much power over the online advertising market, a court has ruled. The case, brought by a group called Ad Tech Collective Action LLP, claims that the tech giant engaged in anti-competitive behavior that caused online publishers in the UK to lose money.
Google’s parent company, Alphabet, has called the case “incoherent” in its attempts to have the legal action dropped. However, the Competition Appeal Tribunal in London has ruled that the case can proceed to trial.
Former Ofcom director Claudio Pollack, now a partner in Ad Tech Collective Action, stated, “This is a decision of major importance to the victims of Google’s anti-competitive conduct in adtech. Google will now have to answer for its practices in a full trial.”
The lawsuit focuses on advertising technology, known as adtech, which determines which online ads people see and how much they cost publishers. Ad Tech Collective Action claims that Google has been engaging in “self-preferencing,” promoting its own products and services over those of its competitors, leading to reduced income for websites and high fees for publishers.
The case, which is opt-out, meaning all relevant UK publishers are included unless they opt-out, is being funded by a third party, and participating UK publishers will not have to pay costs. It is expected to take a long time to resolve, as no court date has been set yet.
This lawsuit comes as Google is under investigation by regulators in the UK, Europe, and the US over its adtech business. The company has already faced hefty fines from the European Commission for anticompetitive behavior. The outcome of this trial could have significant implications for the online advertising industry and Google’s dominance in the market.
