Google Faces Mass Arbitration Over Billions in Advertiser Disputes

Google Faces Potential $218 Billion in Damage Claims Over Illegal Monopolies

Alphabet Inc.'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, a process that has become more common and provides a greater likelihood of settlement awards for claimants.

According to court rulings in 2024, Google's online search and advertising technology businesses were found to be illegal monopolies. While many companies that displayed ads purchased through Google, including USA Today Co. and Advance Publications Inc., have sued for damages since the rulings, advertiser contracts with the search giant require mandatory arbitration over legal disputes. This has led to mass arbitrations, where 25 or more claims against the same company are pooled together.

Ashley Keller, a Chicago lawyer whose firm has handled mass arbitrations against DoorDash Inc., Postmates Inc., and TurboTax-maker Intuit Inc., has signed up a "significant number" of advertisers to participate in claims against Google. The first of those are expected to be filed this week. Keller 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.

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In 2024, there were 82 mass arbitrations over consumer issues and 10 related to employment claims, according to the American Arbitration Association. The Google mass arbitration may be the first to seek to represent corporate plaintiffs, as most of the group legal proceedings to date have sought to arbitrate consumer or labor-related claims.

Google spokesperson Christa Muldoon has disputed the claims, stating that advertisers choose the company's tools to grow their businesses and reach new customers. However, Keller says arbitration clauses in Google's advertisers' contracts effectively prevent damages via class action litigation, and instead allow advertisers to join together to make claims as part of a group arbitration.

The company is facing private damage claims over antitrust cases brought by regulators around the world. In a recent corporate filing, Google said it faced private damage claims but was unable to estimate a possible loss. The company believes it has strong arguments against these open claims and will defend itself vigorously.

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In 2024, a Washington federal court found that Google illegally monopolized the online search market, and a different federal court found Google illegally monopolized the advertising technology that helps connect advertisers to website publishers. The company is expected to appeal both rulings.