Google faces mass arbitration as advertisers seek billions of dollars

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. While many companies that displayed ads purchased through Google — including USA Today Co. and Advance Publications Inc. — 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 Inc., Postmates Inc. and TurboTax-maker Intuit Inc., 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.

“These claims are unfounded,” said Christa Muldoon, a Google spokesperson.“In a highly competitive market, advertisers choose our tools to grow their businesses and reach new customers.”

In a recent corporate filing, the company said it faced private damage claims over antitrust cases brought by regulators around the world. “Given the nature of these matters, we cannot estimate a possible loss,” Google said. “We believe we have strong arguments against these open claims and will defend ourselves vigorously.”