Last updated on April 14th, 2023 at 12:41 pm
An Australian-based law firm on behalf of its clients has slammed a multi-billion dollars lawsuit against major social media platforms, Facebook, Twitter, and Google for banning cryptocurrency-related ads on their platforms.
The lawsuit could cost the tech and social media giants $300 billion, claiming that the crypto ads ban has negatively impacted the progress of their business.
The plaintiffs through their lawyers stated that their businesses have been harmed when the three social media giants banned cryptocurrency advertising in 2018.
Recall that all the major social media platforms including Google ban crypto-related ads within days from each other in 2018.
According to ACCC, specifically under Section 45 of the Competition and Consumer Act, Australia prohibits any “arrangements, understandings or concerted practices that have the purpose, effect or likely effect of substantially lessening competition in a market, even if that conduct does not meet the stricter definitions of other anti-competitive conduct such as cartels.”
“A class action will be brought in the federal court of Australia against the social media giants’ Australian subsidiaries and parent companies for breaches of the Australian Competition and Consumer Law,” the Sydney-based law firm quoted.
According to the lawsuit, “The class action will seek damages for worldwide losses of crypto industry members and investors.
“The announcements of the crypto ad ban by the respondents dropped crypto markets by hundreds of billions of dollars. Crypto exchange volumes also dropped by 60-90%.
Why Facebook, Twitter and Google?
According to JPB Liberty, the Google, Facebook and Twitter “control a very large percentage of the online advertising market (over 66% of 2018 US digital ad revenue & over 80% of social media ad revenue),” stating that the ban on their popular platform severely hurt the way crypto businesses acquire customers.
According to report, the suit currently has $600 million worth of claims but could grow to $300 billion, which has been put before a senior barrister for review.
Sometimes in May 2018, Facebook relaxed the ban and started showing some regulated crypto ads before re-enforcing a total ban.
Asking claimants to join
Also, JPB Liberty is calling on more claimants to join the lawsuit, “Anyone worldwide who was adversely affected by the crypto ad ban announcements.
“Persons holding a steem or hive cryptocurrency on-chain wallet at any time”
Since the ban, the market penetration of cryptocurrencies has reduced drastically, the ban was only reversed for regulated exchanges in Japan and the United States in September 2018, they claim that there were not many regulated exchanges at the time.