Google Faces £5 Billion Class Action in UK Over Alleged Online Search Monopoly

Tech giant Google is facing a multibillion-pound lawsuit in the United Kingdom over allegations that it exploited its dominant position in the online search market to inflate advertising costs for businesses.

According to Reuters, the lawsuit was filed at the UK’s Competition Appeal Tribunal on Tuesday, with potential damages estimated at up to £5 billion (approximately $6.6 billion). The class action is being spearheaded by competition law expert Or Brook on behalf of thousands of UK businesses.

The claim accuses Google of implementing anti-competitive practices that restricted market access for rival search engines and ad providers. Per Reuters, the case argues that Google struck deals with mobile phone manufacturers to have its Search app and Chrome browser pre-installed on Android devices. Additionally, the tech company is said to have paid Apple to make Google the default search engine on iPhones — steps that effectively limited consumer choice and kept competitors at bay.

These arrangements, the claim alleges, enabled Google to maintain its market dominance and charge businesses inflated prices for search advertisements. According to Brook, businesses had little alternative but to use Google’s advertising services to ensure their products and services were visible to consumers.

Read more: German Publisher Files EU Antitrust Complaint Over Google’s Search Policy

“Regulators around the world have described Google as a monopoly,” she said in a statement, adding that securing a top spot on Google search results is crucial for commercial visibility.

In response, Google dismissed the case as meritless. A spokesperson for the company called the lawsuit “yet another speculative and opportunistic case,” according to Reuters. “We will argue against it vigorously. Consumers and advertisers use Google because it is helpful, not because there are no alternatives,” the spokesperson added.

The lawsuit follows heightened scrutiny of Google’s practices by UK regulators. The Competition and Markets Authority (CMA) launched a probe into Google’s search services in January, citing concerns about their effects on the online advertising landscape. As reported by Reuters, the CMA noted that Google commands roughly 90% of all online searches in the UK and serves as a crucial advertising platform for more than 200,000 British businesses.

Source: Reuters