Google is on the defensive at a huge scale in the United Kingdom. The claims may be up to £5 billion, including over $6.6 billion in treble damages. The allegations shed further light on the technology giant’s alleged misuse of its monopolistic power in the online search industry. In fact, this anticompetitive conduct has increased advertising prices for companies across the country, from small Main Street businesses to large corporations.
An anti-competitive lawsuit has already been filed in the U.K. Competition Appeal Tribunal. It alleges that Google has captured nearly 90% of the revenue in the search advertising market. That number is based on a 2020 market investigation by the U.K. competition authority. Competition law academic Or Brook is head of the claimants’ case against Google. Specifically, they claim that as a result of Google’s anti-competitive practices, U.K.-based organizations that depended on its search advertising services have been adversely affected, starting from 1st January 2011.
To maintain its monopoly, Google has executed multiple tactics to solidify its hold over the market, as alleged in the lawsuit. One of the key sticking points is that Google’s Search Ads 360 works better. It obviously steals the limelight from other competing advertising products by far with its noteworthy workloads. This benefit supposedly provides Google the opportunity to continue to entrench its monopoly.
Moreover, Google has entered into agreements with smartphone manufacturers to pre-install its search engine and Chrome browser on Android devices. These types of deals would be considered as anti-competitive tactics to stifle competition. Additionally, it has been reported that Google paid Apple billions to ensure that it remains the default search engine on the Safari browser, further entrenching its dominance in the search sector.
Regulators have noted Google’s extreme dominance of the market, with some calling it a monopoly. In 2018, the European Union finally acted. To date, that was accompanied by a record-breaking fine of €4.3 billion ($4.9 billion) for abusing its dominance with the Android operating system by bundling the Chrome browser and Search with its Play app store.
Now, in light of these challenges, Google is still appealing the record antitrust penalty levied by the European Union. In this latest U.K. case, it has decided to be represented on this by lawyers of Geradin Partners.
Or Brook, representing hundreds of thousands of U.K.-based organizations affected by Google’s practices, emphasized the lack of alternatives for businesses needing to advertise.
“Today, UK businesses and organisations, big or small, have almost no choice but to use Google ads to advertise their products and services,” – Or Brook
Brook further asserted that Google’s actions have resulted in unfair pricing for advertisers:
“Google has been leveraging its dominance in the general search and search advertising market to overcharge advertisers,” – Or Brook
The claim is for over £1bn in compensation for businesses and consumers impacted by Google’s alleged monopolistic behaviour. The case highlights growing concerns about the power held by major tech companies and the implications for competition in digital markets.
As this legal battle plays out, it may set significant precedents. These decisions are likely to set the tone for how competition law will be applied to Big Tech going forward. These first outcomes have the potential to change the future of online advertising. Finally, they will shift the playbook employed by dominant firms on other market sectors.
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