Google is under legal fire in Australia as two class-action lawsuits have been launched against the tech giant, accusing it of misusing its dominance in the advertising technology sector. The lawsuits claim Google’s practices have led to significant revenue losses for news publishers, with some outlets earning as little as $20 per month from Google Ads.
Table of Contents
Court Proceedings Begin in Melbourne
On Friday, the Federal Court in Melbourne held a hearing for the first class-action lawsuit, led by law firm Piper Alderman on behalf of several publishers, including LGBTQ+ news outlet QNews. The case is financially backed by British institution Woodsford and seeks compensation for Google’s alleged anti-competitive conduct.
A second lawsuit, spearheaded by Maurice Blackburn, is also in the pipeline. This case will represent regional publisher Riverine Grazier, which has accused Google of unfairly limiting ad revenue for smaller news outlets.
$50 Million ANZ and OnePath Super Class Action Settlement: Payout & How to Participate
$271.8 Million Uber Class Action Settlement 2024: Eligibility, Compensation & How to Apply
$50 Million A2 Milk Shareholder Class Action: Eligibility, Payout & How to Register
$229.8M Junior Doctor Underpayment Class Action Settlement Approved: Eligibility & Compensation
Work Bonus Age Pension 2025: Everything You Need to Know About the Work Bonus for 2025
How Google’s Ad Tech Works
Many websites, including major news platforms like Guardian Australia, rely on Google’s programmatic advertising system. This system allows advertisers to bid for space on these websites, with Google taking a commission from both the advertiser and the publisher. A 2021 report by the Australian Competition and Consumer Commission (ACCC) estimated that Google retains approximately 27% of each ad’s revenue.
The ACCC report also found that in 2020, 90% of online ad impressions in Australia were processed through at least one Google-owned service. This market dominance, largely due to Google’s acquisition of companies like DoubleClick and AdMob, has led to concerns about fair competition in the digital advertising space.
Publishers Struggling with Low Revenue
Krista Schade, General Manager of the Riverine Grazier, revealed that despite launching an online news site to boost income, the publication earns a mere $20 per month from Google Ads. With only 850 print subscribers in a town of 3,000 people, the outlet finds it difficult to sustain itself financially.
Similarly, QNews publisher Richard Bakker has criticized Google’s control over digital advertising, stating that the current system disadvantages smaller media outlets. “Google’s dominance has created an environment that’s not just unfair but also detrimental to smaller publishers,” Bakker remarked.
Google’s Defense
In response to the allegations, Google has denied any wrongdoing. A spokesperson stated that the lawsuits “ignore the intense competition where ad buyers and sellers have plenty of choice.” They further argued that Google’s advertising tools “help websites and apps fund their content” and that the company remains “a major contributor to Australian publishers.”
Ongoing Investigations and Global Scrutiny
The lawsuits against Google come as global regulators scrutinize the company’s ad business. In the United States, the Department of Justice (DOJ) has sued Google, alleging it illegally monopolized the digital advertising industry. During hearings in September 2023, a former Google executive testified that the company aimed to “crush” competitors in the ad tech space. A ruling in the U.S. case is still pending.
Government Intervention and Future Implications
The Albanese government has proposed a new News Media Bargaining Incentive, which would impose charges on digital platforms unless they negotiate payments with news publishers. The initiative follows Meta’s decision to stop funding news content, whereas Google has started negotiating new deals with publishers.
As the Australian legal battle unfolds, the outcome of these class-action lawsuits could set a precedent for how digital advertising giants operate within the country. The next court hearing is scheduled for March 4, with Riverine Grazier expected to file its case by mid-February.
Leave a Reply