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America October 17, 2023 4 mins read

Google Faces £13.6B Consolidated Claim in U.K.

America ı By Rihem Akkouche

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Google £13.6B Consolidated Claim

In a groundbreaking legal move, the United Kingdom's specialist antitrust court has ushered in a new era of legal warfare, merging two multibillion-pound claims against tech giant Google into a colossal £13.6 billion ($16.6 billion) proposed class action. The ruling, an unprecedented landmark decision, sends shockwaves through the world of tech and antitrust law.

Two Titans Unite Against Google's Monopoly

Charles Arthur, a British journalist, and Claudio Pollack, a former director of the Office of Communications (Ofcom), spearhead this audacious legal battle. Both have independently initiated opt-out collective actions, accusing Google LLC and its parent company, Alphabet Inc., of leveraging their dominance in advertising technology for their gain.

Arthur, representing a coalition of 200,000 website and application publishers, argues that Google's anticompetitive actions have cost rivals hundreds of thousands of pounds in profits since 2014, causing substantial harm. Pollack, on the other hand, seeks damages for similar alleged abuses during the same time frame.

Google's Chokehold on Ad Tech Market Sparks Legal Storm

At the heart of the claims lies the accusation that Google has illicitly stifled competition by giving preferential treatment to its own services, resulting in crippling financial losses for its rivals. Their estimate suggests that since 2014, competitors have been deprived of up to a staggering 19% of their rightful revenue.

Claudio Pollack voiced the prevailing sentiment, stating, "Google's abusive conduct in the ad tech market is the subject of various regulatory and legal proceedings around the world, including in the UK, and is a well-known issue." He added that Google has made it abundantly clear it intends to fight this claim with all its might.

Google £13.6B Consolidated Claim: Uniting for Justice

Without the court's permission to consolidate their claims, the Competition Appeal Tribunal (CAT) would have been left to determine which of Arthur and Pollack's claims of breach of competition law would be the most suitable for certification and trial. To streamline this historic battle, Arthur and Pollack have formed the Ad Tech Collective Action LLP.

Google £13.6B Consolidated Claim: Road to Justice

Before the ultimate trial, a pivotal three-day certification hearing on January 29 will assess whether Ad Tech Collective Action can represent the class and if the claim can proceed on an opt-out basis. If approved, the entity will stand for all publishers in the U.K. who might have suffered from Google's conduct, except for those who choose to opt out. A smaller opt-in class of publisher partners and resellers will also be included.

Legal Heavyweights Join Forces

Ad Tech Collective Action's solicitors, Hausfeld & Co. LLP, have highlighted the immense advantages of this consolidation. It marries the expertise and experience of Arthur and Pollack's advisors, significantly saving time and costs that would otherwise be spent on selecting which claim to proceed with independently.

Luke Streatfeild of Hausfeld, Toby Starr of Humphries Kerstetter LLP, and Damien Geradin of Geradin Partners Ltd. believe that CAT's ruling has set an important precedent for the U.K.'s collective proceedings regime. They emphasize that this claim, brought at no cost to publishers, offers the most effective avenue for them to seek rightful compensation.

Google Denies Allegations Amid Legal Showdown

In response, a Google spokesperson vehemently denied the allegations, characterizing the lawsuit as "speculative and opportunistic." Google asserts that it collaborates constructively with publishers across the UK and Europe, and their advertising tools have been instrumental in funding countless websites and apps. They claim their services continually evolve in partnership with publishers.

Google £13.6B Consolidated Claim : Legal Arsenal Assembled

Ad Tech Collective Action is represented by Luke Streatfeild of Hausfeld & Co. LLP, Toby Starr of Humphries Kerstetter LLP, and Damien Geradin of Geradin Partners Ltd. Legal counsel for Google is yet to be announced.

This consolidated claim promises to be a legal battle of epic proportions, pitting David against the Goliath of the tech world. As the court date approaches, the world watches with bated breath, curious to see if Google can weather this legal tempest.

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Rihem Akkouche

Rihem Akkouche is a passionate journalist dedicated to shedding light on compelling stories, sparking conversations, and fostering a more informed world.

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