🤖 AI Summary
Google is facing potential damage claims worth billions of dollars through mass arbitration proceedings initiated by advertisers who claim the company’s online search and advertising technology businesses are illegal monopolies. According to Bloomberg, two federal judges have already ruled that Google holds a monopoly in these areas.
Adviser contracts with Google require mandatory arbitration, which typically favors companies. However, lawyers like Ashley Keller from Chicago are organizing mass arbitrations, where 25 or more claims against the same company are pooled together. This process increases the likelihood of favorable settlements for claimants. Keller’s firm has already signed up a significant number of advertisers to participate in these claims.
The first of these claims are expected to be filed this week. Keller estimates that potential damages could reach $218 billion based on calculations from an economist his firm hired. He and his team also represent states like Texas in lawsuits against Google for monopolizing advertising technology.
Google has stated it believes it will have strong defenses, but acknowledged they cannot estimate a possible loss due to the complexity of these cases. The arbitration process is expected to take 12 to 24 months to resolve.
An anonymous reader quotes a report from Bloomberg: Alphabet's Google is facing billions of dollars in potential damage claims as part of mass arbitration tied to the company's online search and advertising technology businesses, which courts have ruled were illegal monopolies. Advertisers are banding together to seek payouts through mass arbitration proceedings. While many companies that displayed ads purchased through Google -- including USA Today Co. and Advance Publications -- have sued for damages since the rulings in 2024, advertiser contracts with the search giant require mandatory arbitration over legal disputes.
In arbitration, legal disputes are handled by a mediator, a process that tends to favor companies in individual claims. Mass arbitration -- where 25 or more claims against the same company are pooled together -- have become more common and provide a greater likelihood of settlement awards for claimants. Ashley Keller, a Chicago lawyer whose firm has handled mass arbitrations against DoorDash, Postmates and TurboTax-maker Intuit, said he's already signed up a "significant number" of advertisers to participate in claims against Google. The first of those are expected to be filed this week.
"Two federal judges have already adjudicated Google to be a monopolist," Keller said in an interview with Bloomberg. "It seems sensible to seek redress." Keller, who is also representing Texas and other states in a lawsuit against Google for monopolization of advertising technology, estimates potential claims for online search and display ads could reach $218 billion or more, based on calculations from an economist his firm has hired. Similar mass arbitrations have lasted 12 to 24 months between the filing of claims and resolution, he said. "Given the nature of these matters, we cannot estimate a possible loss," Google said in a recent corporate filing. "We believe we have strong arguments against these open claims and will defend ourselves vigorously."
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