If you’ve ever poured your hard-earned cash into a Google ad campaign and wondered where’s the return, Aussie law firm Slater and Gordon wants to hear from you.

The firm is launching an investigation into whether Google is overcharging small businesses for online ads, and they want businesses to take up the cause.

The investigation focuses on Google’s dominance in what’s known as the “ad tech stack”  basically, all the digital tools and platforms involved in buying and selling ads online. According to Slater and Gordon, Google controls a significant portion of it.

That means small businesses like yours might be stuck funnelling money through a system where Google not only sells you the ad space but also takes a chunky cut of every dollar you spend.

So, what’s the issue with Google?

In January 2023 the US Department of Justice (DOJ) sued Google under US antitrust laws for monopolising key digital advertising technologies, which form levels of the “ad tech stack,” that are used to buy and sell ads on websites.

The Court found that Google had monopoly power and had engaged in anticompetitive conduct, describing Google as a ‘dominant force’ with ‘unparalleled scale’.

The same monopoly applies in Australia.

In simple terms: It’s as if Google runs the auction house, sells the painting, and then charges you a commission on both. Handy for them — not so flash for your budget.

Slater and Gordon say many Aussie businesses have no choice but to use Google Ads or its other platforms (like DV360) if they want to reach customers online. There’s little transparency about how fees are calculated or how ad space is sold — but what is clear is that small businesses are often paying through the nose.

“Many of these Australian businesses are start-ups or small to medium businesses – the job-creating lifeblood of Australia’s economy – who have little choice but to operate and advertise online.

“With their profit margins already cut to the bone these high fees are adding to the cost of doing business,” says Slater and Gordon Practice Group Leader, Ben Hardwick.

Real-life examples? You bet

One online business told Slater and Gordon they’d spent over $6,000 this year on Google Ads — and reckon about 20 per cent of that went straight into Google’s pocket.

A local restaurant forked out $500 a month just to make sure hungry customers could find them online. Google clipped $100 of that.

And with limited alternative platforms and rising ad costs, many businesses are left with no real choice but to grin and bear it, or opt out and lose visibility.

Google’s power in the ad tech industry is so extensive that the vast majority of ads you see online – whether on websites or in search results – will have gone through one of Google’s platforms, allowing Google to extract its high fees and earn millions from Australian businesses.

“Google’s dominance in online advertising means that Australian businesses have little choice but to bow to Google’s demands to keep their businesses running. This is allowing Google to charge a much higher fee (called the ‘take rate’) than they otherwise would have been able to in a properly competitive market.”

What happens now?

Slater and Gordon wants to hear from any business that has advertised through Google in the past six years — whether through Google Ads, AdWords or DV360. They’re gathering stories to see if there’s a case for legal action that could put pressure on Google to play fair.

If you’ve felt the sting of rising ad costs or a lack of transparency, now’s your chance to speak up.

For small business owners, every dollar counts. So if you’ve been spending big on ads and wondering why you’re not seeing the returns, this could be the wake-up call you need.

You can find out more at slatergordon.com.au

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