Google faces 2.1bn Euros lawsuit by media groups for ‘gross misconduct, abuse of dominant position’

Alphabet’s Google is facing a 2.1 billion Euro lawsuit from 32 media groups who are alleging losses due to Google’s digital advertising practices.

The media groups, hailing from various European countries such as Austria, Belgium, Bulgaria, and others, claim that Google’s misconduct has led to a less competitive market, resulting in financial losses for them.

As per a report by Reuters, the lawyers representing the media outlets, from Geradin Partners and Stek, put out a statement, saying “The media companies involved have incurred losses due to a less competitive market, which is a direct result of Google’s misconduct. Without Google’s abuse of its dominant position, the media companies would have received significantly higher revenues from advertising and paid lower fees for ad tech services. Crucially, these funds could have been reinvested into strengthening the European media landscape.”

They argue that without Google’s dominant position and alleged abuse, they would have earned higher advertising revenues and paid lower fees for ad tech services, strengthening the European media landscape.

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Google is already under antitrust scrutiny for allegedly stifling competition by paying companies like Apple and Mozilla to keep its product as the default search engine.

However, Google’s spokesperson has dismissed the lawsuit as “speculative and opportunistic,” emphasizing the company’s constructive collaboration with publishers across Europe. “Google works constructively with publishers across Europe. Our advertising tools adapt and evolve in partnership with those same publishers,” the tech giant said in a statement to The Guardian.

This legal action comes amid increased competition for Google, with rivals like Microsoft and OpenAI posing an existential threat. OpenAI’s AI chatbot, in particular, could directly challenge Google’s core search business. In response, Google has launched its own “Search Generative Experiences” beta version.

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However, Google’s endeavours in AI chatbots have faced challenges. Its Gemini chatbot’s AI image generation tool received criticism for “historical inaccuracies”, being “too woke” and “anti-white.” Following internet mockery, Google temporarily removed the image generation capability, pledging to enhance it before re-release.

(With inputs from agencies)