Phi Finney McDonald is preparing a potential class action against Google regarding alleged anti-competitive conduct in relation to digital advertising.
The class action will seek compensation for advertisers (eg if you purchased a GoogleAd) or publishers (eg if you received revenue from ads on your website) who have suffered loss as a result of Google’s alleged anti-competitive conduct.
Monopoly: Ad Tech and Google’s Conduct
Google operates the largest online advertising exchange, which runs real-time auctions to match advertisers/buyers and publishers/sellers for online advertising. This is achieved through a complex, high frequency series of instantaneous transactions that connect website publishers/sellers and advertisers/buyers. The tools that facilitate and automate this exchange are collectively referred to as “ad tech”.
These tools and Google’s platforms mean that Google owns and controls nearly all aspects of the ad tech stack. Google’s ad tech platform can be characterised as akin to an unregulated high-frequency traded financial market, where one player controls every step of the exchange and can manipulate the bid to preference its own commercial interests. This in contrast to financial markets, where regulation explicitly prevents equivalent practices.
“Imagine if the ASX owned and controlled the majority of brokerages buying and selling securities on that exchange, so that it could preference transactions that benefit its own interests above those of the people wanting to trade. These financial markets have restrictions on equivalent arrangements arising because of the obvious conflicts of interest and risk to competition. Regulation of the ad tech space has not kept up with the rapid growth and dominance of Google, and, until recent moves by regulators and class action lawyers globally, Google has exploited its position of dominance to the detriment of publishers and advertisers unchecked.
“This has flow on effects for the resources available to and the viability of important publishers, like news services. Commentators have also suggested that Google’s conduct flows directly through to inflationary pressures on the costs of goods and services borne by everyday Australians as a result of advertisers paying more to advertise their products than they would in a world in which healthy competition in online advertising exists,” said Joel Phibbs, Principal Lawyer at Phi Finney McDonald.
Proposed Class Action
The proposed claim will allege, among other things, that Google breached the Competition and Consumer Act as a result of its conduct which had the purpose, effect or likely effect of lessening competition in the relevant markets. The conduct we are investigating includes Google’s control of the dominant tools used in digital (or “open web”) display advertising by both: (a) website publishers to sell advertising spaces; and (b) advertisers to purchase ad space on websites, and alleged self-preferencing of Google’s own tools and interests, on both the publisher and advertiser-side of ad transactions.
Should I register? Can I participate?
If you are a website publisher or advertiser and believe you may have suffered loss as result of Google’s conduct, you should consider registering. By registering we can provide you with important updates regarding the investigation and any subsequently filed court proceeding. These updates may affect your legal rights.
You may register your interest below to receive updates about the investigation and any potential class action.
Contact us
If you would like to find out more from Phi Finney McDonald about the proposed class action, please contact us at classactions@phifinneymcdonald.com.