European news publishers sue Google for €2.1bn in advertising claim

Google has been issued with a €2.1bn claim by a group of more than 30 European news media outlets seeking compensation for losses they say have been incurred because of Google’s advertising technology.

Announcing the suit, filed in the District Court of Amsterdam, Brussels-based law firm Geradin Partners and Dutch law firm Stek said Google has abused its dominant market position, which has simultaneously reduced claimants’ revenues from advertising and increased their fees for using advertising technology services.

“The media companies involved have incurred losses due to a less competitive market, which is a direct result of Google’s misconduct,” the law firm said.

Geradin Partners announced in November that it was leading damages action in the UK and the Netherlands on behalf of publishers against Google after securing the backing of litigation funder Harbour.

Damien Geradin of Geradin Partners said at the time: “Publishers, including local and national news media who play a vital role in our society, have long been harmed by Google’s anticompetitive conduct. It is time that Google owns up to its responsibilities and pays back the damages it has caused to this important industry.”

Google is currently under investigation by the European Commission for breaching EU antitrust rules by favouring its own advertising technology over those offered by competitors.

Publishing preliminary findings as part of its formal investigation into Google’s practices in June, the EC said the company may have to split and sell part of its advertising services to resolve conflicts of interest.

It also said Google’s systems favoured its own advertising exchange, giving the company a competitive advantage and blocking rivals to reinforce the firm’s dominant position in the ad tech supply chain.

The EC has yet to conclude its investigation.