A massive lawsuit worth 2.1 billion euros ($2.3 billion) has been brought against Google by 32 media corporations, including Schibsted and Axel Springer.
The complaint, which was filed on Wednesday, charged Google with engaging in actions that hurt digital advertising and cost media companies a lot of money.
Due to increased scrutiny from antitrust authorities regarding its ad tech operations, Google is facing more and more difficulties, which are exacerbated by this legal action. Google’s stock shares dropped by more than 2 percent as a result of the event.
The coalition of media organizations, which represent several European nations, claims that Google’s monopolistic actions have created an uncompetitive market that has hurt publishers’ bottom lines.
Media businesses’ attorneys argued that Google’s activities have reduced advertising revenue possibilities and increased ad tech service expenses.
As evidence for their collective claim, they cited the substantial fine imposed by the French competition authorities in 2021 on Google and the most recent allegations brought out by the European Commission.
Analysts predict that Google will be forced to change its policies and guarantee more fair prices for advertisers if regulatory scrutiny continues.
According to DA Davidson & Co. analyst Gil Luria, who was quoted by Reuters, Google’s advertising business is in uncertain territory, particularly with the rise of generative AI conversation, which presents a significant challenge.
Luria emphasized that regulatory actions could have an impact on Google’s pricing and operational plans.
Google, meanwhile, denied the claims and called the lawsuit “speculative and opportunistic.”
A representative for Google reaffirmed the company’s cooperative efforts with European publishers, stating that their advertising solutions adapt to publishers’ requirements.
Google had previously defended itself against EU antitrust claims pertaining to its buy-side and sell-side supply chain operations in the ad tech sector.
The complaint was brought before a Dutch court with the intention of streamlining the legal process and avoiding dispersed lawsuits throughout other European countries.
Austria’s Krone, Belgium’s DPG Media and Mediahuis, Denmark’s TV2 Danmark A/S, Finland’s Sanoma, Poland’s Agora, Spain’s Prensa Iberica, and Switzerland’s Ringier are among the notable organizations that have joined the legal action against Google.
