Google faces a £5 billion lawsuit in the UK, alleging anti-competitive practices in the search advertising market. A class action filed at the competition appeal tribunal claims Google has exploited its dominant position to inflate advertising prices. The suit, filed by competition law expert Or Brook on behalf of numerous businesses, asserts that Google engaged in practices designed to exclude rivals. These practices include pre-installing its search app and browser on Android devices and making its search engine the default on iPhones.
The complaint further alleges that Google prioritized its own advertising platform with superior functionality and features compared to competitor offerings. This, according to the suit, effectively made Google's advertising platform the only viable option for many businesses seeking online visibility.
A Google spokesperson responded that the case is "speculative and opportunistic," adding that Google's platform is favored by consumers and advertisers due to its value and helpfulness. The spokesperson stated that alternatives exist.
Brook, in a statement, argued that businesses have limited options, highlighting the necessity of using Google Ads for advertising visibility. She emphasized that Google's dominance in search and advertising is well-documented by regulators globally, and securing a prominent position on Google's results pages is crucial for businesses.
The lawsuit further contends that Google has leveraged its market dominance to overcharge advertisers. The Competition and Markets Authority (CMA) initiated an investigation into Google's search services in January 2024, examining the impact on advertising markets. The CMA noted that Google's services account for approximately 90% of searches in the UK and are used by over 200,000 UK businesses for advertising.
