Google is facing a landmark search advertising lawsuit in the United Kingdom, with potential damages totalling £5 billion ($6.6 billion), amid accusations that the tech giant abused its dominant market position to drive up advertising costs for UK businesses.
The class action claim, filed on Wednesday at the UK Competition Appeal Tribunal, alleges that Google exploited its “near-total dominance” in the online search market to limit competition, overcharge advertisers, and secure its position as the default platform for search advertising. The lawsuit spans advertising activity from January 1, 2011, through to the present.
Brought forward by competition law academic Dr Or Brook, the legal action represents hundreds of thousands of UK-based organisations that relied on Google’s search advertising services. Brook is represented by the law firm Geradin Partners.
“UK businesses and organisations now have almost no choice but to use Google Ads to reach customers,” Brook stated. “Google has repeatedly leveraged its market dominance to overcharge advertisers. This claim seeks to hold them accountable and recover damages for affected businesses.”
Accusations of Anti-Competitive Behaviour
The legal filing accuses Google of making anti-competitive agreements with smartphone manufacturers to pre-install Google Search and Chrome on Android devices. It also alleges that the company pays Apple billions to ensure Google remains the default search engine on Safari.
Further, the lawsuit highlights how Google’s advertising tool, Search Ads 360, reportedly provides better functionality for its own ad products than for those of rival platforms—further limiting competition and choice in the digital advertising space.
A 2020 market study by the UK’s Competition and Markets Authority (CMA) found that Google accounted for 90% of all search advertising revenue in the UK.
Google Rejects the Allegations
In response, Google dismissed the legal claim as “speculative and opportunistic,” with a spokesperson saying: “Consumers and advertisers use Google because it is helpful, not because there are no alternatives. We will vigorously defend this case.”
Mounting Scrutiny of Big Tech
This case adds to a growing list of global legal challenges against US tech giants. Google is already appealing a €4.3 billion fine issued by the EU in 2018 for antitrust violations linked to its Android operating system. Meanwhile, the UK’s CMA is investigating competition concerns in the cloud computing sector, with Amazon and Microsoft also under scrutiny.
A separate £1 billion class action filed in December 2024 accused Microsoft of unfair pricing in the cloud services market. Similarly, Meta is currently facing an antitrust trial in the US that could potentially lead to the forced divestment of Instagram and WhatsApp.
As regulatory momentum builds across jurisdictions, the latest Google search advertising lawsuit could become a significant test case in the ongoing push to rein in Big Tech dominance.