Axel Springer and Other Media Groups Sue Google for $2.3 Billion

A consortium of 32 media organizations, including Axel Springer and Schibsted, filed a 2.1-billion-euro ($2.3 billion) lawsuit against Alphabet’s Google on Wednesday. They allege that Google’s digital advertising practices have led to significant losses for the media groups involved.

The lawsuit, which spans several European countries including Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, Hungary, Luxembourg, the Netherlands, Norway, Poland, Spain, and Sweden, coincides with heightened regulatory scrutiny on Google’s ad tech business by antitrust authorities.

According to a statement from their legal representatives, Geradin Partners, and Stek, the media companies claim they have suffered financial setbacks due to Google’s anti-competitive behavior. They argue that Google’s dominance in the digital advertising market has resulted in reduced revenues for publishers and higher fees for ad tech services.

Also Read: Apart from Shreyas Iyer and Ishan Kishan, Four Veterans Including Cheteshwar Pujara Dropped from BCCI Contracts

The group points to previous penalties imposed on Google by regulatory bodies, such as the French competition authority’s fine of 220 million euros in 2021, as well as the European Commission’s ongoing investigation, to support their case.

Analysts suggest that if regulatory action is taken, Google may be compelled to adjust its practices and offer more transparent pricing to advertisers. However, Google has dismissed the lawsuit as “speculative and opportunistic,” emphasizing its collaborative efforts with publishers across Europe.

Also Read: Experts: New Pakistani Government Dependent on Military’s Support

Last year, Google faced EU antitrust charges related to its ad tech business, which operates on both the buy-side and sell-side of the advertising supply chain. The dominance of Big Tech companies like Google in the advertising industry has led to concerns among publishers globally, as they witness a decline in their share of advertising revenues.

The lawsuit was filed in a Dutch court, chosen for its reputation as a key jurisdiction for antitrust damages claims in Europe, to consolidate legal proceedings and avoid multiple claims across different European countries.

Other prominent members of the consortium include 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.