Google hit with $6.6 billion lawsuit over search dominance
Google is facing a new class action lawsuit in the UK that accuses the search giant of abusing its market power and driving up search ad prices.
By the numbers:
- £5 billion ($6.6 billion U.S.): The potential damages Google faces.
- 90%: Google’s share of UK search advertising revenue, according to a 2020 CMA study.
- 13+ years: The period covered by the lawsuit (January 2011 to present).
The details. Competition law academic Or Brook filed the lawsuit today in the UK Competition Appeal Tribunal, alleging Google has:
- Restricted competing search engines.
- Created a monopolistic position in search advertising.
- Forced businesses to use its ad services at inflated prices.
- Secured preferential placement through deals with device makers.
Why we care. This case represents one of the largest competition claims brought against Google in Europe and could potentially affect hundreds of thousands of UK businesses that have used Google’s search advertising since 2011. This lawsuit could potentially lower Google’s artificially inflated search advertising prices if successful, affecting marketing budgets and ROI calculations.
The case highlights how Google’s alleged anticompetitive practices have created a situation where businesses have “almost no choice” but to advertise on its platform despite potentially paying higher rates than would exist in a truly competitive market.
What they’re saying. “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.
Google dismissed the case as “speculative and opportunistic” and plans to “argue against it vigorously,” adding that “consumers and advertisers use Google because it’s helpful, not because there are no alternatives.”
Dig deeper. How Google harms search advertisers in 20 slides
