Google faces £3 billion lawsuit over display advertising monopoly claims
Google is facing a significant new legal challenge in the UK, with advertisers seeking up to £3bn in damages over claims the tech giant has monopolized the display advertising market.
AGC Collective Action Limited, represented by law firm KP Law, appealed to the UK Competition Appeal Tribunal.
The claim suggests that the tech giant favors its own display advertising services to the exclusion of competitors and potential rivals.
Alleged abuse of its dominant position in the online display advertising market reportedly led advertisers to pay more for less effective campaigns.
Display ads, unlike search engine ads, are banner-style promotions used by businesses to reach people browsing online, watching videos, or using mobile applications.
The claim includes all UK-based advertisers who pay for display advertising services provided by Google, whether purchased directly or through a media agency.
Google has been contacted for comment.
Google is already facing a similar legal challenge on behalf of businesses over its dominant position in the online search advertising market, led by competition law expert Or Brook.
The claim alleges that Google’s agreements with mobile device manufacturers to make Google Search the default search engine on devices increased prices for advertisers in the UK.
Google was also fined €2.95bn (£2.55bn) by the European Commission last year for breaching EU competition rules regarding its practices in the online ad tech industry; this behavior has also been the subject of allegations by advertisers in the United Kingdom.
Google appealed the decision, saying it was “wrong” and imposed an “unfair fine.”
A spokesperson for KP Law and the proposed class representative for the UK claim said: “Google has a well-documented track record of anti-competitive conduct in online digital advertising, particularly in relation to ad technology, as recognized by courts and regulators in the US and Europe.
“It is right that UK advertisers have their day in court and respond to Google’s now well-established and long-standing anti-competitive behaviour.
“We look forward to working on behalf of advertisers to obtain compensation from Google.”
