Stage is set for legal battles over Big Tech dominance

After winning an antitrust case against Google in the US, the tech giant is now facing legal battles in the UK. The Competition Appeal Tribunal (CAT) has allowed a £7bn case against Google to proceed, brought by Nikki Stopford, co-founder of Consumer Voice, and legal firm Hausfeld & Co LLP.

The complaint against Google focuses on two main issues. The first involves Google’s advertising model and sponsored searches, where advertisers pay to rank higher in Google Search results. The second part concerns Google’s commercial agreement with Apple.

A study by the Competition and Markets Authority (CMA) found that Google’s return on capital employed was well above competitive benchmarks for many years, leading to higher costs for businesses and ultimately consumers. Stopford highlighted that businesses have little choice as 90% of web searches use Google Search, impacting the prices consumers pay for products and services.

In addition to the advertising model, Stopford’s complaint also addresses Google’s payment to Apple to ensure Google Search is the default search engine on iPhones and other Apple devices using iOS.

The CAT is also considering the impact of the Digital Markets, Competition and Consumers Act on major tech companies like Apple and Google. The CMA’s provisional decision report on mobile browsers identified policies implemented by Apple that restrict competition and hinder innovation from other browsers.

Regulators in the US and UK are seeking to impose controls on Big Tech companies like Google and Apple, with investigations into anti-competitive practices and market monopolization. The EU Digital Markets Act and US DOJ rulings are pushing for changes to give users more choice and address concerns about market dominance.

Both Apple and Alphabet are emphasizing security as a reason to maintain the status quo, but regulators are questioning whether consumers truly benefit from the current state of mobile browsers and whether disruption in the internet search and adtech markets is necessary.