Daijiworld Media Network – London
London, May 8: Tech giant Google is facing a fresh legal challenge in the United Kingdom after a new lawsuit accused the company of abusing its dominant position in the online display advertising market.
The claim, filed on behalf of British advertisers, is seeking compensation of up to £3 billion (around $4 billion), according to KP Law, the legal firm leading the collective action.
The lawsuit alleges that Google unfairly promoted its own display advertising services, including banner advertising tools, while sidelining competing platforms in the market.
According to the claimants, the company’s practices resulted in advertisers paying higher prices for less effective online advertising services.
KP Law stated that Google used its dominant market position to favour its own ad technology ecosystem, thereby restricting competition and harming advertisers across the UK.
Responding to the allegations, a Google spokesperson dismissed the claims as “meritless”.
“Advertisers have many choices, and they choose our ad tech tools because they are simple, effective and affordable,” the spokesperson said.
The lawsuit has been filed as a collective action, meaning all UK advertisers who paid for Google’s advertising services from October 1, 2015, are automatically included unless they opt out.
Google said the claim has not yet been formally served.
The latest legal action adds to the growing scrutiny faced by Google globally over its advertising business practices. The company is already facing several antitrust investigations and lawsuits in the UK, European Union and the United States.
In another major case, a £13.6 billion lawsuit filed on behalf of online content publishers in the UK was allowed to proceed to trial last year.
Meanwhile, US authorities are also pursuing measures aimed at breaking up parts of Google’s digital advertising operations to curb its market dominance.
Last year, the European Union imposed a massive €2.95 billion antitrust fine on Google for allegedly favouring its own advertising services over competitors. Google has announced plans to appeal the penalty.