Google is facing a major legal challenge in the United Kingdom, where a class action lawsuit has been filed seeking over £5 billion in damages over allegations the company exploited its dominance in online search advertising to overcharge businesses.
The case, lodged with the UK’s Competition Appeal Tribunal on Wednesday, accuses the tech giant of using its control over the search engine market to stifle rivals and cement its position as the default destination for online search advertising.
The suit is being brought by competition law expert Or Brook on behalf of hundreds of thousands of UK-based organisations that used Google’s search advertising services from January 1, 2011 until the present.
Brook, represented by law firm Geradin Partners, claims Google’s business practices left advertisers with no real alternative.
“Today, UK businesses and organisations, big or small, have almost no choice but to use Google ads to advertise their products and services,” Brook said in a statement.
“Regulators around the world have described Google as a monopoly and securing a spot on Google’s top pages is essential for visibility.”
She added that Google “has been leveraging its dominance in the general search and search advertising market to overcharge advertisers,” and the legal action aims to seek redress for those allegedly harmed.
Accusations of restricting rivals and inflating costs
The lawsuit accuses Google of engaging in anti-competitive conduct by entering into agreements with smartphone manufacturers to pre-install its apps—such as Chrome and Search—on Android devices.
It also points to multibillion-dollar payments made to Apple to ensure Google remains the default search engine on Safari browsers.
In addition, the claim alleges that Google has designed its Search Ads 360 platform to perform better with its own ad products, disadvantaging competitors’ services.
These actions, it argues, collectively distorted competition and forced advertisers to pay inflated prices for visibility.
A 2020 study by the UK’s Competition and Markets Authority (CMA) found that Google captured 90% of all search advertising revenue, reinforcing its dominant position.
Google has not yet publicly responded to the lawsuit.
Part of growing global backlash against tech giants
This latest legal action is part of a broader pushback against US Big Tech companies, which face increasing regulatory scrutiny and legal challenges globally.
The European Commission fined Google €4.3 billion in 2018 for antitrust violations related to Android software bundling.
That ruling is still under appeal.
In the US , the Federal Trade Commission’s antitrust case against Meta is progressing, raising the prospect of structural remedies, including the potential breakup of platforms like Instagram and WhatsApp.
The UK is also stepping up oversight, with the CMA recently calling for investigations into cloud computing giants Amazon and Microsoft under a newly enacted competition law.
That followed a separate class action last year, which accused Microsoft of overcharging customers of rival cloud providers, seeking over £1 billion in damages.
On Tuesday, the Japan Fair Trade Commission (JFTC) issued a cease and desist order against the tech giant, stating that Google’s conduct may violate the country’s Anti-Monopoly Act by restricting fair competition in mobile search services.
As pressure mounts, the outcome of this case against Google could mark a significant moment in the regulation of digital markets.
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