UK Court Approves £7 Billion Lawsuit Against Google Over Search Dominance
Last week, the UK’s Competition Appeal Tribunal (CAT) approved the advancement of a £7 billion lawsuit against Google for exploiting its search dominance, despite the tech giant’s objections. However, this lawsuit is one of many calling out the company for anti-trust practices, the Verge reported.
What was the case?
Filed in 2023 by consumer rights advocate Nikki Stopford, the case argues that Google abused its dominant position in the UK’s search engine market, overcharging advertisers and subsequently raising prices for consumers. Additionally, it stipulates that the tech company “forced” phone manufacturers to pre-install apps like Google Search and Google Chrome browser on Android devices. Claims were also made about Google paying Apple “billions” to make Google the default search engine on devices using Apple’s iOS operating system. ‘This UK legal action seeks to promote healthier competition in digital markets and to hold Google accountable,” Stopford said.
The CAT’s ruling follows Google’s September appeal, where its parent company Alphabet urged a London tribunal to dismiss the lawsuit, rejecting claims of consumer harm. Hailing the decision, Stopford called it “a significant victory for UK consumers.” She further claimed that despite Google’s popularity among consumers for being free-of-cost, the service isn’t “genuinely free” owing to concerns over dominance.
In a statement to The Verge, Google responded that it believes the case is “speculative” and “opportunistic.” Further, the tech company added that people preferred Google owing to its helpful attributes rather than because of the lack of alternatives.
Google battles multiple lawsuits
Earlier this month, the United States Department of Justice (DOJ) demanded Google sell the Chrome browser alongside advising behavioural remedies to mitigate Google’s control over the Android ecosystem urging it to favour the tech company’s general search services. In September 2024, the European Court of Justice fined Google £2.4 billion, upholding the European Commission’s verdict on the tech giant for abusing its dominant position and favouring its own shopping service ‘Google Shopping’. Besides this, the tech giant is also facing a lawsuit from Yelp, where it was accused of dominating the local search and search advertising markets through anti-competitive conduct.
Notably, in a recently concluded lawsuit by the DOJ against Google, the US District Court in a “landmark” judgement, found the company guilty of being a monopolist in the Search Market. Numerous reasons like Google maintaining exclusivity through deals and its dominance limiting innovation, were noted.
Impact on advertisers and consumers
During a September 2023 lawsuit, the DOJ alleged that Google engaged in monopolistic behaviour by increasing the prices of ads up for auction without informing advertisers. This practice enabled Google to increase revenues earned from search ads. Moreover, during a previous US lawsuit against Google, it was argued that the monopoly tax imposed by the platform on business advertisers like clothing brands, restaurants, and realtors is ultimately borne by consumers through their access to higher-priced and lower-quality products and services offered by said businesses. “Every American suffers when Google imposes its monopoly pricing on the sale of targeted advertising,” it added. Such monopolistic practices also raise concerns about rivals being forced out of the market, competition being driven down, and possible customer disadvantages.
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