Professor Or Brook from the UK has initiated a massive class action lawsuit against Google, seeking around £5 billion in the Competition Appeal Tribunal. This case represents hundreds of thousands of UK organizations that have used Google’s search advertising services. The claim alleges that Google is misusing its dominant position in the search market to inflate prices.
This lawsuit follows another action brought by Nikki Stopford, co-founder of Consumer Voice, in partnership with Hausfeld & Co LLP. Stopford’s case highlights the financial burden on consumers caused by rising advertising costs, which stem from Google’s anti-competitive actions. In November, a court rejected Google’s attempt to dismiss Stopford’s case, allowing it to move forward.
Adding to the scrutiny, the Competition and Markets Authority (CMA) launched an investigation in January to assess whether Google holds a strategic market position in search and search advertising, and if it benefits UK consumers and businesses.
Brook’s action zeroes in on the costs to businesses driven by Google’s practices. Specifically, it questions why Google’s Chrome browser and search engine are set as defaults on Android devices and the payments Google makes to Apple to keep its search the default on Safari. Furthermore, the claim critiques Google’s Search Engine Management Platform (SA360), arguing that it often outperforms competitors in terms of features and functionality.
Damien Geradin, a partner at Geradin Partners, the firm representing Brook, emphasized that this suit is unprecedented in the UK. It aims to seek justice for businesses suffering from inflated advertising costs due to Google’s market practices.
Brook contends that Google has effectively blocked competition in both general search and search advertising. She believes that this behavior restricts rivals from promoting their search engines, allowing Google to secure its dominance. Brook stated, “UK businesses, regardless of size, feel compelled to use Google ads for visibility. Globally, regulators have labeled Google a monopoly, and being on Google’s top pages is crucial for success.”
She continued, “Google exploits its dominance in search and advertising to overcharge advertisers. This class action holds Google accountable for these unlawful practices, seeking compensation for UK advertisers who have been unfairly charged.”
Meanwhile, the CMA is also investigating whether Google’s Play Store enforces unfair terms on app developers seeking to distribute their apps.