The Competition Tribunal has ordered Google to reinstate Lottoland’s access to its advertising services. Picture: Lionel Bonaventure/ AFP
The Competition Tribunal has issued an interim order directing Google to permit Lottoland to access its advertising services known as “Google Ads” for now, according to a statement from the Competition Tribunal.
The Tribunal said: “The Competition Tribunal (“Tribunal”) has issued an interim order directing Google Ireland Ltd and Google South Africa (Pty) Ltd (collectively, “Google”) to permit Lottoland South Africa (Pty) Ltd (“Lottoland”) to access its advertising services known as “Google Ads”, for so long as Google permits any firm in South Africa to utilise Google's Ads Services to advertise fixed-odds betting on the outcome of lotteries.“
The order from the Tribunal applies for a six-month period from its date or the conclusion of a hearing into the prohibited practices alleged by Lottoland, whichever is the first.
Google Ads allows advertisers to display ads to users who use Google search, with Google Ireland acting as the service provider for Google Ads in South Africa.
The Tribunal’s order comes an interim relief application by Lottoland, a licensed bookmaker, which offers fixed-odds bets on the outcome of various lotteries around the world, including the SA national lottery, sporting events and other betting contingencies.
Lottoland has alleged that Google terminated its access to Google Ads without justification while allowing access to its competitors such as Hollywood Bets, World Sports Betting, Betway, Betfred (which owns Lottostar), and Netbet (which trades as Sportingbet).
This resulting in financial harm and the distortion of competition in the market that Lottoland operates in, to the detriment of consumers.
“Lottoland quantified the effects on it of the alleged conduct, arguing that as a direct result of Google’s refusal to allow it to utilise Google Ads, its new customer registration dropped significantly,” the Tribunal said.
“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.”
Google has contended that Lottoland’s fixed-odds bets on the results of the national lottery in South Africa is in contravention of sections 57(1) and 57(2)(g) of the Lotteries Act.
However, the Tribunal said that Google has not presented clear evidence that Lottoland is in breach of the Lotteries Act.
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