A UK court has approved a £5 billion class action lawsuit against Google, accusing the tech giant of abusing its dominance in the online search market. The lawsuit, filed at the Competition Appeal Tribunal, claims Google manipulated the search advertising market by making it difficult for competitors to thrive, ultimately charging higher prices to businesses reliant on its services.
The claim argues that Google engaged in anticompetitive practices by making its search engine the default option on Android devices and paying Apple to ensure Google Search remained the default on iPhones. These arrangements, the plaintiffs assert, left businesses with limited alternatives, forcing them to rely on Google’s advertising tools to gain visibility.
The legal action stems from broader concerns over Google’s market power, with the UK’s Competition and Markets Authority (CMA) noting that 90% of searches in the UK are conducted on Google, and more than 200,000 businesses depend on its advertising platform. The CMA launched an investigation into Google’s practices in January, focusing on the company’s influence over the online search and advertising ecosystem.
Google has dismissed the lawsuit, arguing that users choose its search engine and associated services because of their effectiveness, rather than through coercion. The company maintains that the case is speculative and fails to establish that its practices have harmed competition or consumers.
This case marks a significant moment in the ongoing battle over the market power of tech giants, especially in the wake of global regulatory scrutiny. If the lawsuit proceeds, it could have far-reaching consequences for how Google operates in the UK and may set a precedent for similar actions in other jurisdictions.
For now, the ruling has put Google on the defensive, and the case is expected to unfold over the coming months. As competition regulators continue to focus on big tech’s market influence, the outcome of this lawsuit could reshape the future of digital advertising and the rules governing tech industry dominance.
