The UK’s Competition Appeal Tribunal has unanimously approved a massive £7 billion ($8.8 billion) class action lawsuit against Google, dealing a significant blow to the tech giant’s market dominance and potentially reshaping digital advertising practices.
Consumer rights advocate Nikki Stopford spearheaded the lawsuit, alleging that Google systematically exploits its search engine market position to inflate advertising costs, ultimately harming consumers across the United Kingdom. The tribunal’s decision allows the case to proceed to trial, marking a critical moment in the ongoing global scrutiny of Google’s business practices.
Central to the lawsuit are two key accusations: first, that Google compels Android phone manufacturers to pre-install Google Search and Chrome browsers, and second, that the company pays billions to Apple to remain the default search engine on Safari. These practices, Stopford argues, create an anti-competitive environment that artificially drives up advertising expenses.
The lawsuit is structured as an opt-out collective action, meaning all UK consumers aged 16 and over who purchased goods or services from businesses using Google’s search advertising are automatically included unless they choose to exclude themselves.
This legal challenge is part of a broader international pattern of regulatory and judicial actions against Google. In the United States, a district judge has already ruled Google a monopoly, with potential consequences including the forced sale of Chrome. The European Union has similarly upheld a €2.4 billion antitrust fine against the company.
Google maintains its innocence, with UK senior counsel Paul Colpitts stating that “people use Google because it is helpful; not because there are no alternatives.” However, the mounting legal pressures suggest significant challenges ahead for the tech behemoth.