Google is facing further legal action in the UK on behalf of advertisers alleging it monopolises the market for display advertising. A group making a claim against the technology giant is seeking damages estimated to be up to £3 billion.
Legal proceedings filed
AGC Collective Actions Limited, represented by law firm KP Law, has filed an application for proceedings with the UK’s Competition Appeal Tribunal. The claim alleges Google favoured its own display advertising services while excluding competitors and potential competitors, leaving advertisers paying more for less effective adverts.
Allegations of abuse
The claim alleges Google abuses its dominant position in the online display advertising market. Display adverts are banner-style promotions used by businesses to reach people when they are browsing online, watching videos or using mobile apps. This is different to search engine adverts which are placed where people are using search engines to browse the internet.
Any advertisers based in the UK who paid for display advertising services provided by Google, whether purchased directly or through a media agency, are included within the claim. Google has been contacted for comment.
Broader legal challenges
Google is already facing a similar legal claim over its dominant position in the online search advertising market, led by former deputy High Court judge Roger Kaye KC. That claim alleges Google’s agreements with mobile manufacturers to make Google Search the default search engine on devices has pushed prices up for UK advertisers, and is seeking compensation of up to £25 billion.
Furthermore, Google was last year fined 2.95 billion euros (£2.55 billion) by the European Commission for breaching EU competition rules over its practices in the online ad tech industry, citing conduct which is also the subject of the UK advertisers’ claim. Google said the decision was “wrong” and imposes an “unjustified fine” and has appealed against it.
Statement from KP Law
A spokesperson for KP Law and the proposed class representative for the UK claim said: “Google has a well-documented track record of anti-competitive behaviour in the online digital advertising space, in particular in relation to ad tech, as recognised by courts and regulators across the US and Europe. It is only right that UK advertisers have their day in court and that Google now answers for its entrenched and longstanding anti-competitive behaviour. We look forward to working on behalf of advertisers to secure compensation for them from Google.”
