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Axel Springer and other European media groups sue Google for $2.28 billion

By Nithya Bose in Business News, posted February 29, 2024

Google faces a Euro 2.1 billion ($2.28 billion) lawsuit from over 30 media groups from 17 European countries, including the media conglomerate Axel Springer.

These organizations claim Google's dominant stance in the advertising market has disadvantaged their businesses.

The lawsuit alleges Google's control over the advertising technology market has led to decreased competition.

This resulted in lower revenues and higher advertising costs for these media companies.

This case references a 2021 settlement where Google agreed to a nearly $270 million fine with French antitrust authorities.

It was for practices that allegedly disadvantaged publishers and other advertisers.

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The media coalition argues Google's practices have further strained news organizations' fragile economic models.

Declining print subscription sales and the corresponding drop in ad revenues exacerbated it.

Oliver Bethell, Google's Legal Director, said the company works collaboratively with European publishers and claimed the suit is “speculative and opportunistic.”

He added: “We’ll oppose it vigorously and on the facts.”

The media groups have consolidated their claims in the Netherlands, aiming for a unified legal front against Google to prevent scattered litigation across different jurisdictions.

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