Alphabet's Google is sued for 2.1 billion euros by 32 media groups, alleging losses in digital advertising practices. The lawsuit, including publishers from various European countries, claims Google's misconduct led to a less competitive market.

Shares of the California-based company fell over 2% in response to the lawsuit. Antitrust regulators are also scrutinizing Google's ad tech business, posing challenges to its core advertising operations.

The group alleges that Google's dominant position resulted in lower revenues and higher fees for ad tech services. They argue that these funds could have otherwise strengthened the European media landscape. The lawsuit cites fines imposed on Google by French and European authorities in 2021.

Analysts suggest that if regulatory scrutiny continues, Google may need to adjust its practices and provide more consistent pricing to advertisers. The lawsuit coincides with the threat to Google's advertising business posed by the rise of generative AI chat.

In response, Google opposes the lawsuit, deeming it "speculative and opportunistic." The company claims to work constructively with European publishers and emphasizes the adaptability and evolution of its advertising tools in collaboration with publishers.

Publishers worldwide express concerns about Big Tech's dominance in advertising, with Google being the most dominant digital advertising platform globally. The lawsuit is filed in a Dutch court, chosen for its reputation in handling antitrust damages claims in Europe.