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130,000 UK businesses suing Google for lost advertising revenue The Register

130,000 UK businesses suing Google for lost advertising revenue The Register

 


Alphabet and its subsidiary Google are facing a 13.6 billion class action lawsuit, alleging they are abusing their dominant position in online advertising to make billions of dollars at the expense of small businesses in the UK. I’m here.

The case was filed in the Competition Court of Appeals on Tuesday by law firms Geradin Partners and Humphries Kerstetter, which represent some 130,000 online publishers and app businesses in the UK.

Google is the world’s largest digital advertising company, with revenue of $54.4 billion in its latest Q3 results. [PDF]It acts as a broker and sells space to advertisers on behalf of third party websites. According to Humphries Kerstetter, the search giant controls up to 90% of the market in a given segment and has the power to dictate terms and prices.

The company’s anti-competitive practices alleged in the lawsuit have hurt small businesses, such as publishers and online apps that sell ad space, by up to 40 percent, the law firm said.January 1, 2014 It is estimated that up to $13.6 billion (approximately $16.5 billion) has been lost to companies involved in litigation since then.

Humphries Kerstetter partner Toby Starr, who spearheaded the allegations, points to similar antitrust investigations, accusing Google of abusing its dominant position in online advertising from the EU.

“Google’s misconduct in this matter is well-known. French authorities have fined the company and multiple investigations are underway around the world. It does not compensate UK publishers of sites and mobile apps who have lost billions of dollars in advertising revenue due to Google’s actions.The only way to recoup these losses is through a competitive class action lawsuit.” he said in a statement.

In a 2021 lawsuit, the U.S. Department of Justice also accused Google of “unlawfully maintaining a monopoly through anti-competitive and exclusive practices in the search and search advertising markets.”

A Google spokesperson called the latest UK class action “speculative and opportunistic” in a statement to Reuters. , and many of its adtech competitors, help millions of websites and apps fund their content and help businesses of all sizes effectively reach new customers. These services are the same publisher,” the spokesperson said.

The Register has reached out to Google for comment.

Sources

1/ https://Google.com/

2/ https://www.theregister.com/2022/12/01/google_class_action_lawsuit/

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