Alphabet’s Google is facing a class action lawsuit in the UK that could result in damages of up to £5 billion ($6.6 billion or approximately Rs. 56,536 crore). The lawsuit, filed at the Competition Appeal Tribunal, accuses the tech giant of abusing its dominant position in the online search market, claiming that its actions have inflated advertising costs and harmed competition. The legal battle highlights the growing scrutiny of Google’s market practices, particularly its influence over online search and advertising.
The class action, led by competition law expert Or Brook, argues that Google’s business practices have allowed the company to charge higher prices for the ads that appear in search results than it would be able to in a competitive market. A significant part of the case revolves around Google’s alleged agreements with phone manufacturers to pre-install Google Search and the Chrome browser on Android devices. The lawsuit also claims that Google paid Apple to make its search engine the default on iPhones, further stifling competition from other search engines.
According to the plaintiffs, these practices were designed to give Google a competitive edge in the online search and advertising markets, ensuring its search engine had superior functionality and features compared to its rivals. By locking in users and developers to its ecosystem, the lawsuit claims Google effectively shut out competitors, reducing choices for consumers and increasing costs for advertisers.
In response, Google has dismissed the lawsuit as “speculative and opportunistic.” A spokesperson for the company stated that the tech giant would “vigorously” defend itself against the claims. The spokesperson further argued that consumers and advertisers continue to use Google’s services because they are helpful and effective, not because there are no alternatives in the market. This lawsuit adds to the growing legal challenges Google faces in various countries over its market dominance and antitrust practices.