Google Faces Mass Arbitration By Advertisers Seeking Billions (bloomberg.com)
- Reference: 0181700156
- News link: https://yro.slashdot.org/story/26/04/14/048209/google-faces-mass-arbitration-by-advertisers-seeking-billions
- Source link: https://www.bloomberg.com/news/articles/2026-04-13/google-faces-mass-arbitration-by-advertisers-seeking-billions
> Alphabet's Google is [1]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 [2]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.
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> 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.
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> "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."
[1] https://www.bloomberg.com/news/articles/2026-04-13/google-faces-mass-arbitration-by-advertisers-seeking-billions
[2] https://yro.slashdot.org/story/25/04/17/1950221/federal-judge-declares-googles-digital-ad-network-is-an-illegal-monopoly
"Mass Arbitration" vs "Class Action Lawsuit" (Score:3)
In a Class Action Lawsuit, the law firms cash out big-time if they win. The law firm gets a percentage (often 1/3) of the total settlement, so that's a strong incentive to bring these suits and make them as broad as possible.
BUT, I don't know if arbitration proceedings have the same financial advantages for the arbitrator. That could be a Very Important distinction. I strongly suspect the reason this is in arbitration is the contract terms between the advertisers and Google force arbitration to settle contract disputes.
(IANAL)
Chipotle (Score:3)
I'm reminded of the case where Chipotle was facing a class action and had a few hundred people removed from the lawsuit since they had signed arbitration agreements. Turns out this was a really bad move as every single one of them filing for arbitration carried a minimal legal fee. The judge refused to let them out of their own fuckup:
[1]https://www.latimes.com/busine... [latimes.com]
[1] https://www.latimes.com/business/hiltzik/la-fi-hiltzik-chipotle-20190104-story.html
Arbitration contracts are changing (Score:2)
to try and force plaintiffs to arbitrate individually as well as prohibiting class actions.
Arbitration contracts frequently include clauses that force plaintiffs to resolve disputes individually, waiving rights to class actions or joinder, and replacing court litigation with private, binding arbitration. These clauses are generally enforceable under the Federal Arbitration Act (FAA). However, challengers can fight these clauses by arguing they are unconscionable or by exploiting situations where companies r
Re: (Score:3)
It's better to organize a mass arbitration campaign. One class action lawsuit is likely going to be far cheaper to defend that 50,000 arbitration claims that the company is on the hook to pay for the arbitrator (not to mention the cost of representation at these hearings) even if the case is ultimately found in their favor.
Two things (Score:2)
A) TFA is paywalled. Something about people in glass houses or something like that.
B) Since I can't read the article without being extorted, what harm are these companies claiming?
Won't help consumers (Score:2)
These lawsuits are terrible for consumers. McDonald's has been doing them with beef producers instead of lobbying for antitrust law enforcement.
So what happens is that instead of competition the beef producers pay out settlements to a few big guys that can sue. McDonald's pockets the money, they can run their competitors out of business because smaller guys can't force settlements and prices keep going up along with corporate profits.
That's what's happening here instead of law enforcement we get bac