The plaintiffs argue that the Internet company exploited its market power and deprived many media companies of advertising revenue. Their demand: Google should pay 2.3 billion euros in damages.
Numerous European media companies have sued the Internet company Google because of allegedly anti-competitive behavior in online advertising. The plaintiffs also include Axel Springer Verlag and Hubert Burda Media. The plaintiffs’ law firms, Geradin Partners and Stek, said the Internet company should pay 2.3 billion euros to compensate for losses incurred. “It is time for Google to be held responsible for its misconduct and for those affected – the European media sector – to be compensated,” said Damien Geradin.
In a common one Press release it is said that the lawsuit was filed in the district court in Amsterdam. 32 media companies from 17 European countries are involved. They have decided to pool their claims for damages “against one of the largest global corporations that has been exploiting its dominant market position for years.”
Already Million dollar fine in France
One argument for the lawsuit: The French competition authority has already determined that Google grants its own services preferential treatment when allocating online advertising space. As a result, the group had to pay a fine of millions in 2021. The EU is also considering forcing the Alphabet subsidiary to sell this division.
“Without Google’s abuse of its dominant market position, the media companies would have generated significantly higher advertising revenue and paid lower fees for online advertising services,” the plaintiffs continue. “These funds could have been reinvested in strengthening the European media landscape.”
The company has always denied the allegations. Google made $224.5 billion in revenue from online advertising in 2022. That was almost 80 percent of the entire group’s revenue. According to experts, around 28 percent of all internet advertising spending worldwide ends up in Google’s pockets.