A £7 billion class action lawsuit against Google is set to proceed to trial in the UK. Accused of abusing its search engine dominance to inflate advertising costs, the tech giant’s practices are under scrutiny and are said to have harmed both consumers and competitors.
On Monday, 25th November 2024, the case was greenlit by the UK’s Competition Appeal Tribunal. Consumer rights advocate Nikki Stopford is leading the charge, accusing Google of abusing its dominant position in the search engine market.
This lawsuit is part of a growing global movement to challenge Google’s market dominance. By alleging that Google has abused its power to inflate advertising costs, this case could potentially reshape the digital advertising landscape. If successful, it could lead to lower advertising prices, increased competition among search engines, and the emergence of new platforms for businesses to reach consumers.
This would ultimately benefit consumers by providing them with more choice and potentially lower prices for goods and services.
What Are The Allegations On Google?
Filed in September 2023, the lawsuit alleges that Google’s anti-competitive practices led to increased advertising costs for businesses. This, in turn, resulted in inflated prices for millions of consumers in the UK. According to the claim, Google abused its dominance in the Android market and “forced” phone manufacturers to pre-install Google Search and Chrome as default options. It also accuses Google of paying “billions” to Apple to maintain its position as the default search engine on Safari—a practice that has recently come under scrutiny in recent US court rulings.
“Google continues to rig the search-engine market to charge advertisers more, which raises the prices they charge consumers,” Stopford stated. “This UK legal action seeks to promote healthier competition in digital markets, and to hold Google accountable.”
Meanwhile, Google has challenged the claims, calling the lawsuit “speculative and opportunistic.” Paul Colpitts, Google UK’s senior counsel, reiterated the company’s stance: “People use Google because it is helpful; not because there are no alternatives. We will argue against this case vigorously.”
The Bigger Picture
Google’s legal troubles are escalating on a global scale. In the US, the Department of Justice is pursuing a lawsuit that could force Google to divest its Chrome browser, aiming to break up its dominance in the browser market. In the EU, Google is facing ongoing antitrust cases, including a recent failed appeal against a $2.7 billion fine for abusing its search market dominance.
As the UK case progresses, Google is expected to defend its position by arguing that its dominance is a result of consumer preference rather than anti-competitive practices. However, a ruling against Google could have far-reaching implications for the company's operations in key markets.
This UK lawsuit, along with other global legal actions, underscores the growing scrutiny on Big Tech monopolies. Governments and consumer advocates are increasingly taking steps to curb the power of these tech giants, and the outcome of this case could set a precedent for future regulatory actions.
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