The UK Competition Appeal Tribunal (CAT) has given the green light to a £7bn collective action against Google.
This landmark legal action, brought by Nikki Stopford, co-founder of Consumer Voice, and legal firm Hausfeld & Co LLP, will require Google to defend its conduct in the search engine market.
The claim alleges that Google used its dominance in the search market to hike up advertising costs.
Stopford will represent UK consumers aged 16 years or older who made purchases from businesses selling in the UK and using Google’s search advertising services between January 1, 2011, and September 7, 2023. The action is an opt-out collective action, meaning all affected UK individuals are automatically included as claimants unless they opt out.
The collective action argues that Google overcharged advertisers due to its dominant position in the UK search engine market, passing these costs on to consumers.
The case against Google and Alphabet dates back to 2009, alleging that Google required its search app and Chrome browser to be installed on Android devices and had exclusive search engine status on Apple’s Safari browser in exchange for a share of mobile search advertising revenues.
“This tribunal approval is a major win for UK consumers,” said Stopford. “While many rely on Google for free search results, its dominance has led to increased costs for consumers.”
Almost everybody uses Google as their go-to search engine, trusting it to deliver quality results at no cost. But its service isn’t genuinely free because its dominance has resulted in increased costs for consumers
Nikki Stopford, Consumer Voice
“Google has been warned by regulators but continues to manipulate the market, raising prices for consumers. This action aims to promote fair competition and hold Google accountable for consumer compensation,” she added.
Luke Streatfeild, partner at Hausfeld & Co LLP, leading the litigation, said: “This judgment is a positive step for UK consumers, allowing the case for compensation to proceed to trial. It also clarifies the assessment of exclusionary conduct by dominant companies, particularly in digital markets with high barriers to entry.”
The CAT decision comes after Alphabet was found to engage in anti-competitive behavior in the US, with the Department of Justice seeking to make the company divest its Chrome browser.
