Competition Tribunal orders Google to advertise Lottoland

The Competition Tribunal has ordered Google Ireland and Google South Africa to grant advertising access to Lottoland through its Google Ads platform for six months, starting 12 November or the conclusion of a hearing into the prohibited practices alleged by Lottoland.

Google Ads enables advertisers to display ads to users who use Google Search, with Google Ireland acting as the service provider for Google Ads in South Africa.

Lottoland applied for interim relief on allegations that Google terminated its access to Google Ads without justification while allowing access to its competitors.

Google’s termination

Lottoland is a licensed bookmaker, which offers fixed-odds bets on the outcome of various lotteries around the world, including the South African national lottery, sporting events and other betting contingencies.

It alleged the termination led to financial harm and distorted competition in the market that Lottoland operates in, to the detriment of consumers.

Lottoland’s competitors are other licensed bookmakers in South Africa such as Hollywood Bets, World Sports Betting, Betway, Betfred (which owns Lottostar), and Netbet (which trades as Sportingbet).

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Google’s response to allegations

Google contended that Lottoland’s offering of fixed-odds bets on the outcome of the national lottery in South Africa contravenes sections 57(1) and 57(2)(g) of the Lotteries Act.

The Tribunal said: “It [Google] submitted that in terms of its online advertising policies, which are designed to protect users, restrictions are placed on the promotion of certain gambling activities”

“Of particular relevance, the promotion of lotteries is limited to state-licensed entities and this restriction is in place to ensure compliance with the provisions of the Lotteries Act.

Potential for criminal liability

The tech giant claimed that supplying Lottoland with access to Google Ads carries the potential for criminal liability and other commercial risks.

However, that argument was dismissed as the tech giant allowed Lottoland’s competitors to advertise the same or similar services which Google claimed contravened the Lotteries Act.

“The Tribunal notes in its interim reasons that Google has not presented clear evidence that Lottoland is in breach of the Lotteries Act.”

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Reasons for the order

The Tribunal, which is an independent adjudicative body that adjudicates on matters referred to it by the Competition Commission, said it will publish the full decision once any confidentiality claims have been finalised with the parties involved.

“In deciding the matter, the Tribunal considered the following three factors holistically, balancing each factor against the other to determine what is reasonable and just.

“The factors were evidence relating to the alleged prohibited practice; the need to prevent serious or irreparable damage to the applicant (Lottoland); and the balance of convenience.”

New customer registration dropped

Lottoland said due to Google’s refusal to allow it to use Google Ads, its new customer registration dropped significantly.

“Furthermore, based on the seven months in which Google supplied its Google Ads to Lottoland, Lottoland estimates that it has, as a result of Google’s refusal to supply, suffered a significant reduction in revenue, which is ongoing.”

The Tribunal said after considering all the evidence, it found that Google’s decision to revoke Lottoland’s access to Google Ads has resulted in significant commercial harm and affected Lottloland’s ability to compete with its rivals for new users.

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