Google is confronting a class action lawsuit in the U.K. Competition Appeal Tribunal, seeking over GBP 5 billion ($6.6 billion) in damages over allegations that the tech behemoth exploited its dominant position in the online search market to inflate advertising costs.
Instituted by competition law expert Or Brook, the lawsuit asserts that Google has restrained rival search engines over a period beginning in January 2011, thereby cementing its monopoly and positioning itself as the sole option for online search advertising.
The legal action, filed on behalf of numerous U.K.-based organizations, is spearheaded by law firm Geradin Partners. Brook commented that the lack of alternatives forces businesses of all sizes to rely on Google for advertising, describing Google as a monopoly essential for securing online visibility.
Brook claims Google’s practices have led to inflated advertising fees, calling the class action a necessary step to hold Google accountable for these alleged violations and to seek redress for affected U.K. advertisers.
A 2020 study by the U.K.’s Competition and Markets Authority (CMA) indicated that Google accounted for 90% of search advertising revenue, highlighting its dominant position.
The lawsuit argues that Google has contractually ensured its search engine’s predominance by pre-installation agreements with handset manufacturers and hefty financial deals to remain the default search engine on Apple’s Safari browser.
Furthermore, it accuses Google of enhancing the capabilities of its Search Ads 360 tool to favor its own advertising products over those of competitors.
