UK Competition Tribunal allows £7 billion legal claim against Google

A £7 billion legal action against Google, accusing the tech giant of exploiting its dominant position in the search engine market, will move forward to trial, the Competition Appeal Tribunal (CAT) has ruled. The case, filed by consumer rights advocate Nikki Stopford, claims that Google has used its market dominance to artificially inflate advertising costs, which are ultimately passed on to consumers.

The lawsuit also accuses Google of unfair practices in the mobile industry, alleging that the company coerces manufacturers using its Android operating system to pre-install Google Search and Chrome on smartphones. Additionally, the claim highlights Google’s arrangement with Apple, where Google reportedly pays to ensure that its search engine is the default option on Apple devices, including the iPhone.

The CAT dismissed Google’s attempts to have the case thrown out, instead certifying the claim, allowing it to proceed to trial. Ms. Stopford, who is serving as the class representative, will advocate for all UK consumers aged 16 and above who have purchased goods or services from businesses using Google’s search advertising services. The case is being pursued as an opt-out collective action, meaning all affected UK consumers are automatically included as claimants unless they choose to opt out.

Commenting on the tribunal's decision, Ms. Stopford expressed her satisfaction, calling it a significant win for consumers across the UK. “Almost everybody uses Google as their go-to search engine, trusting it to deliver quality results at no cost. But its service isn’t genuinely free because its dominance has resulted in increased costs for consumers,” she said. “Google has been warned repeatedly by competition regulators. Yet it continues to rig the market to charge advertisers more, which raises the prices they charge consumers. This action seeks to promote healthier competition in digital markets, and to hold Google accountable and ensure that consumers are compensated for the harm caused by its conduct.”

The ruling is the latest in a series of setbacks for Google, which has already faced scrutiny from global regulators. Earlier this year, the US Department of Justice proposed that Google be forced to sell its Chrome web browser, along with other potential remedies, following a US court ruling that the company was operating a monopoly in the search market.

A Google spokesperson responded to the CAT ruling, stating, “We still believe this case is speculative and opportunistic – we will argue against it vigorously. People use Google because it is helpful; not because there are no alternatives.”