A class action lawsuit seeking £5 billion ($6.6 billion) in damages from Google was filed this week at the UK Competition Appeal Tribunal. The US tech giant is accused of using its dominant position in online search to drive up the cost of advertising on the internet.
The claim, brought by competition law specialist Or Brook, alleges that Google has been abusing its market power to suppress rival search engines, thereby reinforcing its own position. According to the lawsuit, this behavior effectively makes Google the only company offering competitive terms for online advertising. Represented by the law firm Geradin Partners, the case is being pursued on behalf of hundreds of thousands of UK businesses and organisations that used Google’s search advertising services between 1 January 2011 and the date of filing.
The lawsuit emphasizes that many UK companies, regardless of size, are left with few options other than to rely on Google to advertise their products and services. Or Brook argues that Google’s actions unfairly inflate advertising costs and should be subject to legal accountability. The case aims not only to challenge Google’s practices but also to secure compensation for advertisers affected by the alleged misconduct. We’ll keep you updated as the case develops and more information becomes available.
Google’s Response and Market Context
Google has dismissed the case as “speculative and opportunistic” and signaled its intent to “vigorously” contest the allegations in court. A spokesperson added that both consumers and advertisers choose Google because it is useful, not due to a lack of alternatives.
A 2020 investigation by the UK’s Competition and Markets Authority (CMA) revealed that Google accounts for approximately 90% of the revenue in the online advertising sector, reminds NIXSOLUTIONS. The lawsuit claims that Google has deliberately limited competition in the search engine space. Specific concerns include agreements with smartphone manufacturers that set Google Search and the Chrome browser as defaults, as well as substantial payments made to Apple to ensure that Google remains the default search engine on Safari.
As this legal challenge moves forward, the outcome could significantly impact how online advertising is structured in the UK. Yet we’ll keep you updated as more integrations and changes take shape in the digital advertising space.