Google to Face a $25 Billion Lawsuit for Siphoning Money Off Publishers in the EU and UK

In the latest scrutiny over Google’s anticompetitive behavior in the digital advertising market, the tech giant is to face a $25 billion (€25 billion) lawsuit in the U.K. and EU in coming the next weeks. The tech giant is accused of dominating the ad-tech market with behaviors that have deprived publishers of billions in revenue. Top line Google’s maximum revenue comes from advertising, where it generated $56.28 billion last quarter. Through its ad tech, the company coordinates the sale of online ads between publishers and advertisers, helping publishers sell ad space on their websites. Brands are then able to bid for those slots using Google’s automated auction feature. This latest lawsuit is not limited to only news publishers, instead aiming to cover the damages suffered by all online publishers, including the owners of websites that carry banner advertising, according to the statement by Belgian law firm Geradin Partners. “Publishers, including local and national news media who play a vital role in our society, have long been harmed by Google’s anticompetitive conduct,” said Damien Geradin, partner at Geradin Partners. The firm will lead the case in the EU and U.K. against Google on behalf of the publishers. Between the lines To that, Geradin Partners has teamed up with litigation law firm Humphries Kerstetter in the U.K. to allow opting out for collective damages claim in the U.K. Competition Appeal Tribunal, meaning affected parties will be automatically treated as part of the claim. The claim will focus on recovering compensation for lost revenue from the sale of advertising space on the websites of all class members. “This important claim will represent a class of victims of Google’s anticompetitive conduct in ad tech who have collectively lost an estimated £7 billion,” Toby Starr, partner at Humphries Kerstetter, said in a statement. Similarly, Geradin Partners has partnered with Dutch law firm Stek to bring a collective claim to represent EU publishers. But that claim in the Netherlands will allow opting in, meaning impacted parties would need to apply to join the claim. EU's DMA aims to regulate tech giants and promote fair and contestable markets in the digital sector. “We're seeing the end of Google's dominance,” said Shiv Malik, founder and CEO of U.K.-based data company Pool Data. “The surveillance economy that everyone’s been complaining about for years is on its way out.” Google did not respond to a request for comment. In the U.S., Google faces similar antitrust scrutiny over its ad-tech stack from a group of attorneys. Meanwhile, the tech giant has allegedly created plans to break up its ad-tech business to placate regulators. Regardless, Congress needs to be more aggressive with its rule-making processes to regulate Big Tech, according to Malik. Bottom line As an alternative, Australia has pointed the way with its News Media Bargaining Code, which has enabled news outlets to pry more than almost $150 million ($200 million AUS) from Big Tech. The U.S. has advanced a similar bill. Meanwhile in the U.K., where publishers are left distraught after Google and Facebook have long chopped off their business, plans are budding to emulate Australia’s legislation. “But maybe lawsuits are the way to go,” Malik said. “It’s ultimately indefensible from an economic perspective for Google to suck up this much advertising revenue.”