Friday, November 22, 2024

Google must face £13.6bn advert claim: Tribunal rules allegations tech giant behaved anti-competitively can proceed to trial

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A multi-billion-pound claim against Google over allegations it has behaved anti-competitively in the advertising tech space can proceed to trial, the UK’s Competition Appeal Tribunal has ruled.

The £13.6billion claim, brought by a group called Ad Tech Collective Action LLP, alleges that Google has abused its dominant position in the sector, causing significant losses to UK publishers.

Google called the case ‘incoherent’ but the Competition Appeal Tribunal has now ruled that it can go to trial.

The case focuses around advertising technology, or ad tech, the system that decides which online adverts people see and how much they cost. This is a major source of revenue for many websites and a valuable sector for Google because its search engine is the most widely used.

A multi-billion-pound claim against Google over allegations it has behaved anti-competitively in the advertising tech space can proceed to trial, the UK’s Competition Appeal Tribunal has ruled (stock)

The £13.6billion claim, brought by a group called Ad Tech Collective Action LLP, alleges that Google has abused its dominant position in the sector (stock)

The £13.6billion claim, brought by a group called Ad Tech Collective Action LLP, alleges that Google has abused its dominant position in the sector (stock)

At the heart of the Ad Tech Collective Action argument is the claim that Google has abused its position in the market by promoting its own products and services over those of its rivals.

It argues that the activity has meant publishers have received less money from ads they host as well as paying higher fees to Google.

Claudio Pollack, from Ad Tech Collective Action, said: ‘This is a decision of major importance to victims of Google’s anti-competitive conduct. Google will now have to answer for its practices.

At the heart of the Ad Tech Collective Action argument is the claim that Google has abused its position in the market by promoting its own products and services over those of its rivals (stock)

At the heart of the Ad Tech Collective Action argument is the claim that Google has abused its position in the market by promoting its own products and services over those of its rivals (stock)

‘I look forward to working with our advisers to deliver compensation for years during which the relevant markets did not provide a competitive outcome for the UK publishing market.’

No court date has yet. But Oliver Bethell, legal director at Google, said: ‘Our advertising tools help millions of websites and apps fund their content and enable businesses of all sizes to effectively reach new customers.

‘These services adapt and evolve in partnership with those same publishers. This lawsuit is speculative and opportunistic. We’ll oppose it vigorously.’

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