Google Faces Second Class Action Probe in Adtech Industry
Google is facing a new challenge as Melbourne-based law firm Phi Finney McDonald delves into a potential class action lawsuit over alleged anticompetitive behavior related to digital advertising. This marks the second investigation of its kind, with Maurice Blackburn also probing Google for similar reasons not long ago. Legal teams from both firms had previously worked together on class actions against Apple and Google in connection to lawsuits from Epic Games.
Phi Finney McDonald is aiming to secure compensation for those who have suffered losses due to Google’s alleged anticompetitive actions, including advertisers, publishers, and others in the industry. Principal lawyer Joel Phibbs explained the situation by saying, “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.”
He highlighted that the rapid growth and dominance of Google have outpaced regulation in the ad tech space, allowing Google to exploit its position unchecked. This, in turn, impacts the resources available to publishers and advertisers, potentially leading to inflationary pressures on the costs of goods and services for Australians. The investigation shines a light on the need for healthy competition in online advertising.
Recent developments indicate that big tech companies like Google may be facing fines of up to $50 million under new competition policies. This comes as Google’s Australian policy head exits amid increasing tech reforms. Additionally, Labor is gearing up to reveal plans for competition policies aimed at big tech companies. These changes signal a shift in the regulatory landscape for tech giants.
With ongoing legal and regulatory scrutiny, the tech industry is undergoing significant shifts that could reshape the way these companies operate. Stay informed as these stories develop to understand the potential impact on the digital advertising and tech sectors.
