Three tech giants – Google, Facebook, and Twitter – are looking at a $600 million class-action lawsuit as multiple Australian crypto entrepreneurs are taking them to court for banning crypto-related advertisements in 2018.
As reported by the Daily Mail Australia on Sunday, the total litigation amount could rise to $300 billion as more and more parties are joining the class-action lawsuit against the tech giants.
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The lawsuit is based on the losses made by many crypto startups as the three major platforms banned advertisements on initial coin offerings (ICOs) and extended to anything related to the blockchain industry.
An oddly imposed ban or the right one?
Google reversed the ban in October 2018, allowing the regulated exchanges to purchase advertisement slots in the United States and Japan, while Facebook softened its restrictions for non-financial blockchain ads, but cryptocurrency ads need to gain approval first.
Twitter, however, is still banning all the advertisements on ICOs, token sales, crypto exchanges, and even wallets.
The “no-win-no-fee” case in the Australian court is represented by the Sydney-based law firm JPB Liberty, and the litigation is currently in front of a barrister seeking approval for further process.
The law firm is also raising funds for the class-action lawsuit from venture capitalists, litigation funders, and investors, and offering the claimants 70 percent of the settlement fee and a 30 percent cut to the funders.
According to eMarketer.com, Google and Facebook together captured 60.9 percent of the total US digital advertisement spending, and this number goes up when combined with the sister and subsidiary platforms like YouTube and Instagram.
All three social media platforms imposed the bans citing the protection to the investors from ICO and other crypto-related scams. This decision, however, also impacted legitimate cryptocurrency businesses.
Meanwhile, Ripple also moved against YouTube earlier this year for running fake XRP giveaways on the video streaming platform.
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