In a significant decision, (12 November) the Competition Tribunal has granted Lottoland South Africa interim relief, mandating Google Ireland and Google South Africa to permit Lottoland access to the Google Ads platform. This order will apply for six months or until the Tribunal concludes its review of the alleged anti-competitive practices against Google, whichever is sooner.
Lottoland, a licensed South African bookmaker offering fixed-odds bets on lottery outcomes, claimed that Google’s decision to block its ads on Google’s platform allowed competitors, including Hollywood Bets, World Sports Betting, Betway, and Betfred’s Lottostar, to advertise similar betting services. Lottoland alleged that the exclusion has caused it financial harm and reduced competition.
Google argued that it restricted Lottoland’s ads to comply with the Lotteries Act, which limits lottery-related advertising to state-licensed entities. However, the Tribunal noted Google’s inconsistency in enforcing this policy, pointing out that other bookmakers continued to advertise similar services on Google Ads. The Tribunal emphasized that Google’s actions appeared to disadvantage Lottoland without a clear legal basis, creating market distortions.
In its preliminary assessment, the Tribunal found Google to be a dominant player in South Africa’s online search and search engine marketing sectors, describing Google Ads as a “scarce service” essential for businesses reliant on online advertising. It further noted that Google’s dominance restricts feasible alternatives, citing barriers for competitors to replicate the reach and effectiveness of Google Ads.
The Tribunal also found that Google’s actions against Lottoland may lack a pro-competitive justification and may instead harm competition by reducing Lottoland’s ability to attract new users, affecting market dynamics. Furthermore, the Tribunal observed that Lottoland had experienced significant revenue loss and a decline in customer registrations as a result of Google’s exclusion.
Ultimately, the Tribunal ruled that allowing Lottoland to access Google Ads would protect competition while the case proceeds. It emphasized that interim relief aims to prevent significant competitive harm without making a final determination on the legality of Google’s conduct.
A non-confidential version of the Tribunal’s reasoning will be released once confidentiality issues are resolved.
