The UK Competition Appeal Tribunal (CAT) just gave the green light for a massive £7bn collective action against Google. This specialized court now requires Google to explain its long-standing practices in the search engine market. Nikki Stopford, co-founder of Consumer Voice, alongside Hausfeld & Co LLP, is leading this significant legal challenge.
The claim accuses Google of leveraging its dominant position in the search market to drive up advertising costs. Stopford represents all UK consumers aged 16 and above who bought goods or services from businesses using Google’s search advertising between January 1, 2011, and September 7, 2023. This case is an opt-out action, meaning everyone affected in the UK is included unless they choose to opt out.
The argument centers on how Google allegedly overcharged advertisers, with those costs likely passed on to consumers. Stopford’s case highlights that since at least 2009, Google has conditioned the installation of its app store on Android devices on also having its search app and Chrome browser installed. The situation with Apple is similar, as Google pays to be the default search engine on Safari for its devices, benefiting from a share of mobile search advertising revenue.
“This is a significant win for UK consumers,” Stopford stated. “Everyone relies on Google for search, assuming it’s a free service. But in reality, its dominance has led to higher costs for consumers.”
Stopford emphasized that Google has repeatedly been warned by competition regulators but continues to manipulate the market, resulting in higher charges for advertisers and, consequently, consumers. This action aims to encourage healthier competition in digital markets and hold Google accountable, ensuring consumer compensation.
Luke Streatfeild, a partner at Hausfeld & Co LLP leading the case, added, “This judgment is great news for UK consumers. It allows our case for compensation to move forward to trial. This ruling also clarifies how to assess exclusionary actions by dominant companies, especially in digital spaces with high barriers to entry. It sets a precedent for future cases aimed at fostering fairer competition and better consumer outcomes.”
This action follows recent findings in the US, where Alphabet was also deemed to have acted anti-competitively, prompting the Department of Justice to push for the company to divest its Chrome browser.