The UK Competition Appeal Tribunal (CAT) has granted certification to a £7 billion collective lawsuit against Google, brought forward by consumer rights campaigner Nikki Stopford. The case accuses Google of leveraging its dominance in the search engine market to inflate advertising costs, which allegedly led to higher prices for consumers. This landmark ruling allows the claim to proceed to trial, marking a significant moment in UK collective consumer actions.
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The allegations
The lawsuit centres on the company’s agreements with device manufacturers and browsers, including a multi-billion-dollar deal with Apple that secured Google’s position as the default search engine on iOS devices. Additionally, the claim asserts that the company compelled Android handset makers to pre-install its Search and Chrome apps, further entrenching its monopoly in search advertising. These practices are alleged to have raised advertising costs, which were then passed on to consumers purchasing goods and services from businesses using Google Ads.
Tribunal’s decision
The CAT rejected the company’s efforts to dismiss the claim, finding that Stopford presented a robust case. It authorised her as the class representative for all UK residents aged 16 or older who made purchases from businesses using its search advertising services between January 2011 and September 2023. This opt-out lawsuit automatically includes eligible claimants unless they choose to opt-out.
Wider implications for Google
This ruling adds to its parent company Alphabet’s mounting regulatory challenges worldwide. In the US, the Department of Justice (DoJ) recently proposed measures to curb the company’s market dominance, including selling its Chrome browser and banning default search agreements. The European Commission has also penalised it for anti-competitive behaviour linked to Android. Globally, Google Ads generated $224 billion in revenue in 2022, representing nearly 80% of Alphabet’s total revenue.
The certification of this £7 billion class action marks a significant milestone in the battle against the company’s alleged anti-competitive practices in the search engine market. With millions of UK consumers potentially affected, the case highlights growing scrutiny of Big Tech’s dominance and its impact on consumers worldwide. As the lawsuit progresses, it will serve as a critical test of legal frameworks designed to ensure fair competition in digital markets, potentially setting a precedent for future actions against dominant tech players.
