A significant class action lawsuit has been filed against Google in the UK, accusing the tech giant of abusing its dominant position in the online advertising market. The lawsuit claims that Google’s practices have harmed British businesses by limiting competition and inflating ad costs. Led by competition law expert Professor Or Brook from the University of Leeds, the case argues that Google’s actions have left businesses with no choice but to pay inflated prices for ads.
Allegations of Anti-Competitive Practices
The legal action asserts that Google intentionally restricted competition in the online advertising space, making it nearly impossible for other ad services to compete effectively. By doing so, Google allegedly forced businesses to rely on its platform, driving up the cost of ads. Professor Brook claims that Google’s tactics have harmed UK businesses, particularly small and medium-sized enterprises, that depend on advertising to reach their customers.
One of the key issues highlighted in the lawsuit is Google’s requirement that Android phone manufacturers pre-install Google apps, including Chrome and Google Search. This practice, according to the claim, limited the choices available to users and advertisers alike, reinforcing Google’s control over the advertising market.
Exclusive Deals and Billions in Revenue
Another major aspect of the lawsuit focuses on Google’s alleged agreement with Apple. The claim suggests that Google paid Apple billions of dollars to remain the default search engine on Apple’s Safari browser. This arrangement is accused of further suppressing competition in both the search and advertising markets, ultimately reducing alternatives for users and advertisers.
The lawsuit seeks compensation for UK businesses that used Google’s advertising services between January 1, 2011, and April 15, 2025. During this period, Google’s parent company, Alphabet, generated substantial revenue from search advertising. In 2023 alone, Alphabet reportedly earned around €16.35 billion from its search advertising business. This highlights the immense financial impact that Google’s advertising dominance has on the industry.
Regulatory Scrutiny and Growing Global Pressure
The UK’s Competition and Markets Authority (CMA) is currently investigating whether Google has abused its market position in the search and advertising sectors. This investigation is part of a broader global scrutiny of Google’s business practices, which has led to increasing pressure from regulators around the world.
In addition to the UK investigation, Google recently faced regulatory challenges in Japan, where the government issued the company a formal cease-and-desist order over suspected antitrust violations. This order is reportedly the first of its kind in Japan, further demonstrating the growing global concern over Google’s practices.
Potential Impact of the Lawsuit
At present, Google and its parent company Alphabet have not publicly responded to the class action lawsuit. If the lawsuit is successful, it could lead to significant compensation for thousands of UK advertisers who have been affected by Google’s alleged anti-competitive behavior.
This case represents a major development in the ongoing global efforts to regulate and curb the market power of big tech companies. If the UK court rules in favor of the plaintiffs, it could set a precedent for similar legal actions in other countries, as regulators and businesses seek to rein in Google’s dominance in online advertising.
As the legal battle continues, the outcome of this case will be closely watched by both regulators and businesses worldwide. The potential for substantial compensation for affected businesses could send a strong message to tech giants about the importance of fair competition in the digital marketplace. Google’s response, or lack thereof, will likely play a pivotal role in shaping the future of online advertising regulations. For now, businesses and consumers alike will be waiting to see how this lawsuit unfolds.