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Google investigated for ‘ad tech’ class action
A class action firm has commenced an investigation into Google over its alleged anti-competitive conduct in the digital advertising space.
Naomi Neilson
Phi Finney McDonald has considered a class action to secure compensation for advertisers, publishers and others whose interests were allegedly sidelined by Google in advertisement transactions.
“Imagine if the ASX owned and controlled the majority of brokerages buying and selling securities on that exchange, so that it could preference transactions that benefit its own interests above those of the people wanting to trade,” Phibbs said.
“Regulation of the ad tech space has not kept up with the rapid growth and dominance of Google and, until recent moves by regulators and class action lawyers globally, Google has exploited its position of dominance to the detriment of publishers and advertisers.”
Among other things, Phi Finney McDonald’s proposed class action would claim Google breached the Competition and Consumer Act as a result of this alleged misconduct. This, the firm said, had the effect or likely effect of lessening competition in the relevant markets.
The investigation would focus on the dominant tools used in digital display advertising by website publishers wanting to sell advertising space, and advertisers who wish to purchase ad space.
“Commentators have also suggested that Google’s conduct flows directly through to inflationary pressures on the costs of goods and services borne by everyday Australians as a result of advertisers paying more to advertise their products than they would in a world in which healthy competition in online advertising exists,” Phibbs said.
Naomi Neilson
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
You can email Naomi at:
