Google is facing a substantial legal challenge in the United Kingdom, with a class-action lawsuit seeking £5 billion (approximately $6.6 billion) in damages. The claim centers around allegations that the tech giant abused its dominant position in the online search market, leading to inflated advertising prices and stifled competition for UK businesses.
Filed with the UK's Competition Appeal Tribunal, the lawsuit alleges that Google engaged in anti-competitive practices that harmed hundreds of thousands of UK-based organizations that utilized Google's search advertising services from January 1, 2011, until the present. The legal action asserts that Google implemented strategies to restrict competing search engines and solidify its monopolistic position, ultimately becoming the only viable option for businesses seeking online visibility through search advertising.
At the heart of the lawsuit is the claim that Google leveraged its dominance to overcharge advertisers. The plaintiffs argue that the inflated prices for search advertisements resulted from Google's anti-competitive behavior, costing UK businesses billions of pounds. The lawsuit seeks to hold Google accountable for these allegedly unlawful practices and to secure compensation for the affected advertisers.
The lawsuit also highlights Google's deals with smartphone manufacturers, including requiring them to pre-install Google Search and the Chrome browser on Android devices. Also cited is Google’s payments to Apple to ensure Google is the default search engine on its Safari browser. These agreements, the lawsuit contends, further cemented Google's dominance and hindered the ability of rival search engines to compete effectively. The claim also states that Google provided better functionality and features to its own advertisement offers than it provided to competitors, giving it even more advantage.
Backing the claims is a 2020 market study by the UK's Competition and Markets Authority (CMA), which revealed that Google earned approximately 90% of all revenue in the search advertising market. This statistic underscores Google's commanding position in the UK's online search landscape and reinforces the concerns about its potential to exert monopolistic control.
The legal challenge is spearheaded by Or Brook, a competition law academic, with representation from the law firm Geradin Partners. Brook argues that UK businesses, regardless of size, have been left with "almost no choice" but to rely on Google Ads to promote their products and services. She asserts that Google has been "leveraging its dominance in the general search and search advertising market to overcharge advertisers."
Google has dismissed the lawsuit as "speculative and opportunistic" and vowed to "argue against it vigorously." A company spokesperson stated that "Consumers and advertisers use Google because it is helpful, not because there are no alternatives."
This legal battle is the latest in a series of antitrust challenges faced by Google and other Big Tech companies worldwide. Regulators and lawmakers are increasingly scrutinizing the market power of these tech giants and their potential to engage in anti-competitive practices. In 2018, the European Union fined Google €4.3 billion for abusing the dominance of its Android mobile operating system, a penalty Google is still appealing.
