Google is facing a major class action lawsuit in the UK, where it could be liable for up to £5 billion ($6.6 billion) in damages. The case alleges that the tech giant misused its dominant position in the online search market to inflate advertising costs.
Filed Tuesday at the Competition Appeal Tribunal, the lawsuit claims that Google’s market behavior allowed it to charge higher rates for ads appearing alongside search results than would have been possible in a truly competitive environment.
The complaint argues that Google, a subsidiary of Alphabet, struck deals with phone manufacturers to pre-install Google Search and Chrome on Android devices. It also alleges that Google paid Apple to make its search engine the default on iPhones — moves designed to suppress competition.
Filed by competition law expert Or Brook, the lawsuit represents thousands of businesses. It accuses Google of providing its own advertising platform with better features and integration than rival offerings, giving it an unfair advantage.
In response, Google dismissed the case as speculative and opportunistic. A spokesperson said, “We will argue against it vigorously. Consumers and advertisers use Google because it is helpful, not because there are no alternatives.”
Brook contends that businesses were left with little choice but to rely on Google’s advertising tools to gain online visibility. “Regulators around the world have described Google as a monopoly,” she said. “Securing a spot on Google’s top pages is essential for visibility. Google has been leveraging its dominance in general search and search advertising to overcharge advertisers.”
This lawsuit follows a broader investigation launched in January by the UK’s Competition and Markets Authority (CMA) into Google’s search services and their effects on the digital advertising market. According to the CMA, Google controls around 90% of the UK’s search traffic and its services are used by over 200,000 British businesses for advertising.