Google is facing a £5 billion class action lawsuit in the UK, which accuses the tech giant of abusing its dominance in the online search and advertising markets.
Filed at the Competition Appeal Tribunal this week, the case represents another front in a series of international antitrust challenges facing the company.
Market power leveraged
The claim, brought by competition law academic Or Brook on behalf of thousands of UK-based businesses, alleges Google leveraged its market power to inflate advertising prices by restricting competition.
It alleges that Google’s deals with phone manufacturers to pre-install Google Search and Chrome on Android devices – and its payments to Apple to remain the default search engine on iPhones – have created artificial barriers to entry for rivals.
The lawsuit also accuses Google of prioritising its own advertising products by integrating enhanced functionality and features into its search engine that competitors cannot access, further entrenching its dominance.
Brook argues that UK advertisers have had little choice but to use Google’s platforms to reach consumers, despite the inflated costs.
The legal action comes as scrutiny of Google intensifies globally.
In the US, a federal judge recently ruled that the company had unlawfully monopolised online advertising technology.
The ruling found Google “wilfully engaged in a series of anticompetitive acts” and caused substantial harm to publishers, advertisers, and consumers by maintaining control across both the buying and selling sides of the digital ad market.
In the UK, the Competition and Markets Authority (CMA) is also investigating Google’s role in online search and advertising.
Anti-competitive conduct
The CMA has provisionally found that the company may be engaging in anti-competitive conduct, with Google’s platforms accounting for more than 90% of all search traffic in the UK and used by over 200,000 businesses for advertising.
Google has denied the UK lawsuit’s allegations, describing the case as “speculative and opportunistic.”
The company maintains that advertisers and consumers choose its services due to their effectiveness, not a lack of alternatives.
A spokesperson said that Google would defend itself “vigorously” against the claims.
The courts’ attention builds on a list of legal and regulatory actions aimed at curbing Google’s dominance, with potential implications not only for its advertising operations but also for the structure of its parent company, Alphabet.