Google is facing a hefty £3.4 billion lawsuit following accusations that their adtech operations have failed to generate appropriate revenue for advertisers and content producers alike.
Google is being taken to court for a staggering £3.4 billion in compensation by publishers, represented by ex-Guardian technology editor Charles Arthur who claims the tech giant unlawfully leveraged its dominant position within online advertisements – thus limiting revenue potential for these publishers.
This is not the first time that Google has had to face such allegations from watchdog organizations worldwide.Ofcom’s Claudio Pollack has accused Google of detrimental economic activity, seeking £13.6 billion in damages on behalf of publishers who have suffered similar financial losses as a result.
Charles Arthur has filed a lawsuit in an effort to hold Google accountable for anti-competitive conduct and make restitution to those who have been adversely impacted. The investigating authority lacks the power of compensation, so only legal action through court can ensure justice is served.
Google told the BBC “Google’s advertising tools contribute to the digital media industry by providing millions of websites and apps with necessary financial support, while enabling businesses everywhere to connect with new potential customers.”
Adtech is revolutionizing how digital advertisements are presented and evaluated, leaving publishers in a precarious position. The rise of online media has intensified the culture war within journalism over which platform yields higher profits as physical newspapers and magazines lose their grip on success.