Google is facing a significant new legal challenge in the United Kingdom, with advertisers seeking up to £3 billion in damages over allegations that the tech giant has monopolised the display advertising market.
Legal Action Filed
AGC Collective Actions Limited, represented by law firm KP Law, has filed an application with the UK’s Competition Appeal Tribunal. The claim asserts that Google favoured its own display advertising services while excluding rivals and potential competitors.
This alleged abuse of its dominant position in the online display advertising market reportedly led to advertisers paying more for less effective campaigns. Display adverts are banner-style promotions used by businesses to reach people browsing online, watching videos, or using mobile apps, distinct from search engine adverts.
Scope of the Claim
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.
Previous Antitrust Actions
Google is already facing a similar legal claim over its dominant position in the online search advertising market, led by competition law expert Or Brook on behalf of businesses. That claim alleges Google’s agreements with mobile manufacturers to make Google Search the default search engine on devices have pushed prices up for UK advertisers.
Furthermore, Google was last year fined €2.95 billion (£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 has said the decision was “wrong” and imposes an “unjustified fine” and has appealed against it.
Response from Legal Representative
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.”
