Google faces £7 Billion UK class action over search monopoly

The class action lawsuit accused Google of abusing its search dominance to harm consumers and stifle competition.

Google is staring down a £7 billion ($8.8 billion) class action lawsuit in the UK, accusing the tech giant of abusing its search dominance to harm consumers and stifle competition. The UK’s Competition Appeal Tribunal (CAT) ruled Friday that the case, led by consumer advocate Nikki Stopford, can proceed.

Why it matters: This lawsuit joins a growing global wave of legal challenges against Google’s market practices, challenging its control over search and advertising costs, potentially leading to reduced ad prices, increased competition, and alternative platforms for reaching consumers.

The allegations:

• Android dominance: The lawsuit claims Google “forced” Android device manufacturers to preinstall Google Search and Chrome, echoing findings in prior EU rulings.
• Apple payments: Google allegedly paid Apple billions to secure its default search engine status in Safari, an issue central to recent US legal battles.
• Ad pricing impact: Stopford argues Google’s control over search drove up advertising costs, indirectly inflating consumer prices across the UK.

What they’re saying:

• The plaintiffs: “Google continues to rig the search-engine market to charge advertisers more, which raises the prices they charge consumers,” Stopford said, framing the lawsuit as a push for fairer digital competition.
• Google: Paul Colpitts, Google UK’s senior counsel, dismissed the claims as “speculative and opportunistic,” maintaining that people choose Google for its quality, not a lack of alternatives.

Bigger picture. Google is facing mounting scrutiny worldwide:

• A US DOJ lawsuit threatens to break up its browser dominance by forcing a sale of Chrome.
• Ongoing antitrust cases in the EU include a failed $2.7 billion appeal over search market abuses.

What’s next: As the case moves forward, Google will likely argue its dominance stems from consumer preference rather than anticompetitive behavior. A decision in this lawsuit could reshape how the tech giant operates in key markets.

Bottom line: The CAT ruling marks another significant challenge for Google as governments and consumer advocates worldwide ramp up efforts to curb Big Tech monopolies.