Google faces a $2.3 billion lawsuit filed by 32 media companies

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Google is facing a €2.1 billion ( $2.3 billion) lawsuit from 32 media groups, including Axel Springer and Schibsted. They alleged that Google improper practices in its digital advertising business, causing losses for media companies. Some media companies claim that Google abused its monopoly position, resulting in an insufficiently competitive market, preventing media companies from earning higher advertising revenues and harming the European media industry.

Google is confronting a €2.1 billion ($2.3 billion) lawsuit from 32 media groups, including Axel Springer and Schibsted, accusing the tech giant of inappropriate conduct in its digital advertising operations,which result in financial losses for media companies. The group filed the lawsuit in a Dutch court. Facing a crisis Some media organizations, including Axel Springer and Schibsted, alleging taht Google’s improper practices in its digital advertising business make them experience some financial losses.

“Abusing of its monopoly position, impeding market competitiveness, hindering them from securing higher advertising revenues, and incurring elevated fees for advertising technology services, ultimately causing damage to the European media industry.”said by these companies. “The media companies involved have incurred losses due to a reduction in market competition, which is a direct result of Google’s misconduct,” stated a declaration by lawyers from Geradin Partners and Stek.

File a suit The group filed the lawsuit in a Dutch court,citing the €2.2 billion fine imposed by the French competition authority on Google’s ad tech business in 2021 and the European Commission’s charges last year, aiming to substantiate their collective claim. Despite the accusations, a Google spokesperson opposes the lawsuit, deeming it “speculative and opportunistic.” D.A.

Davidson & Co analyst Gil Luria says “If there is follow-through to the regulatory scrutiny, Google may need to curtail its practices and provide more consistent, predictable pricing to its advertising customers.” Luria added that this lawsuit comes at a time when Google’s core advertising business is facing an existential threat from the shift to generative AI chat. A spokesperson for Google, expressed the company’s opposition to the lawsuit, further labeling it as “speculative and opportunistic.” Also Read: Google suspends Gemini AI model’s image generation function