Axel Springer, Other European Media Sue Google For $2.3 Billion — Update

By Ben Glickman

Alphabet-owned Google was hit with a EUR2.1 billion ($2.28 billion) lawsuit by a group of European media organizations, who are alleging Google's position in the advertising market harmed their business.

The coalition of more than 30 European media organizations from 17 countries, which includes media giant Axel Springer, is alleging they incurred losses from less competition in the advertising technology market. The suit claims the media companies would have had higher revenue and lower advertising fees without Google's dominant position.

The suit references a 2021 settlement between Google and French antitrust regulators, in which the company agreed to pay nearly $270 million in fines and make certain changes to its advertising system and practices. Regulators said at the time that Google had used its position to harm publishers and other ad sellers.

"News media were negatively affected at a time when their economic model is already weakened by the decline in sales of print subscriptions and the decline in associated advertising revenue," the coalition said in a statement.

Google Legal Director Oliver Bethell said in a statement that the company works with publishers across Europe, and that its tools and the tools of competitors help websites fund content and reach new customers.

"This lawsuit is speculative and opportunistic," said Bethell. "We'll oppose it vigorously and on the facts."

The coalition said in a release that they had decided to consolidate their claims for compensation against Google in order to avoid having multiple claims in different countries.

The case was filed in the Netherlands and is being brought by law firms Geradin Partners and Stek.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

February 28, 2024 13:35 ET (18:35 GMT)

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