Google Faces Mass Arbitration by Advertisers Seeking Billions

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.

Google didn’t immediately respond Monday to a request for comment.

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.”

Illegal Monopolies

A Washington federal court found in 2024 that Google illegally monopolized the online search market. The company is appealing. A different federal court found Google illegally monopolized the advertising technology that helps connect advertisers to website publishers. The company is expected to appeal.

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.

Keller said arbitration clauses Google has in its advertisers’ contracts effectively prevents damages via class action litigation. Instead, they can join together to make claims as part of a group arbitration, which is usually handled by a single law firm and gives them more leverage in settlement negotiations.

Over the past few decades, companies have increasingly sought to enforce arbitration accords with consumers and employees. Supporters say arbitration is cheaper and more efficient than traditional litigation. Critics say companies are trying to strip individuals of important rights, including the ability to band together on claims that as a practical matter are too small to press individually.

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