Google is the subject of a new class action lawsuit in the United Kingdom. The plaintiff is seeking up to £5 billion ($6.6 billion) in damages. The case claims that Google abused its dominance in the online search ad market. The legal action was filed on Wednesday in the U.K. Competition Appeal Tribunal and alleges that Google restricted competing search engines to strengthen its own position and increase advertising prices.
The lawsuit is being led by competition law academic Or Brook, represented by law firm Geradin Partners. It covers hundreds of thousands of U.K.-based organizations that used Google’s search ad services between January 1, 2011, and the date of the claim.
Almost no choice but to use Google ads
“Today, UK businesses and organisations, big or small, have almost no choice but to use Google ads to advertise their products and services,” Brook said in a statement.
“Regulators around the world have described Google as a monopoly and securing a spot on Google’s top pages is essential for visibility.”
Brook added, “Google has been leveraging its dominance in the general search and search advertising market to overcharge advertisers. This class action is about holding Google accountable for its unlawful practices. It is also about seeking compensation on behalf of UK advertisers who have been overcharged.”
Google denies wrongdoing
Google dismissed the allegations, describing the lawsuit as “yet another speculative and opportunistic case.” A spokesperson for the company said, “Consumers and advertisers use Google because it helpful, not because there are no alternatives,” and confirmed that Google plans to contest the claim vigorously.
The case makes use of data from a 2020 study conducted by the Competition and Markets Authority (CMA) of the United Kingdom. It revealed that Google accounted for 90% of all search advertising market revenue. The lawsuit cites strategies like agreements with smartphone brands to pre-install Chrome and Google Search. It also cites payments to Apple to maintain Google as Safari’s default search engine.
It also claims Google’s ad tool, Search Ads 360, offers better functionality with its own services than with those of rivals, further stifling competition.
The lawsuit adds to a growing list of legal and regulatory challenges faced by major U.S. tech firms. Google is currently appealing a €4.3 billion fine from the EU for anti-competitive practices related to Android. In the U.S., Meta faces a landmark antitrust trial. Similarly, in the U.K., Microsoft is being sued for £1 billion over alleged unfair pricing in the cloud computing market.
