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Google hit with adtech class action
Google was hit with a class action by publishing companies that alleged they suffered losses as a result of its misuse of market power in the advertisement technology space.
Naomi Neilson
Filed by Piper Alderman on behalf of QNews and Sydney Times Media, the class action alleged Google caused publishers to lose out on higher revenue from selling advertising space because of the monopoly it holds in the advertisement technology (adtech) sector.
Piper Alderman partner Greg Whyte said the class action “is of major importance” to publishers who sold space on these platforms.
“As is the case in several other jurisdictions around the world, Google will be required to respond and defend its monopolistic practices, which significantly affect competition in the Australian publishing market,” Whyte said in a statement.
In August 2021, the Australian Competition and Consumer Commission (ACCC) found Google is the “largest supplier of ad tech services across the entire ad tech supply chain”, with no other provider having the same scale or reach.
“Google’s vertical integration and dominance across the ad tech supply chain, and in related services, have allowed it to engage in leveraging and self-preferencing conduct, which has likely interfered with the competitive process,” the ACCC said.
In June 2021, Google was fined €220 million by the French competition authority, which concluded the major search engine abused its dominant position in the adtech market.
The UK Competition and Markets Authority, the European Commission, the US Department of Justice and the Canadian Competition Bureau have also commenced their own investigations or legal proceedings into Google’s conduct in adtech.
Woodsford chief investment officer Charlie Morris said the class action will follow in the footsteps of these jurisdictions.
“This action aims to hold Google to account for its misuse of market power and compensate website and app publishers for the consequences of Google’s misconduct,” Morris alleged.
“Working closely with economists, we have determined that Australian website and app publishers have been earning significantly less revenue and profits from advertising than they should have. We aim to right this wrong.”
Naomi Neilson
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
You can email Naomi at:
