Google Faces £7 Billion Class Action Lawsuit in the UK for Search Dominance

Google Faces £7 Billion Class Action Lawsuit in the UK

Google has been ordered to confront a colossal class action lawsuit in the UK, amounting to £7 billion (approximately $8.8 billion). This legal action arises from accusations of consumer harm linked to the company's alleged monopolistic practices in the search engine market. The UK Competition Appeal Tribunal (CAT) ruled in favor of the lawsuit moving forward, highlighting the increasing scrutiny and number of legal challenges that Google faces globally.

Background of the Lawsuit

Initially filed in September 2023 by Nikki Stopford, a consumer rights advocate, the class action lawsuit alleges that Google's anticompetitive behavior has led to increased advertising costs for companies. As a result, this has contributed to higher prices for millions of consumers across the UK.

Allegations Against Google

• The lawsuit claims that Google coerced manufacturers of Android devices to pre-install Google Search and Chrome, similar actions which the European Union has previously criticized.
• It is alleged that Google paid Apple substantial sums to ensure that Google remains the default search engine on the Safari browser.

Statement from Consumer Advocate

Nikki Stopford expressed that Google is manipulating the search engine market to impose higher charges on advertisers, leading to inflated prices for consumers. She emphasized the need for fostering healthier competition within digital markets and holding Google accountable for its practices.

Google's Response

In September, Google sought to dismiss the lawsuit, but the CAT has unanimously permitted it to proceed. Paul Colpitts, Google UK’s senior counsel, defended the company’s practices, stating that consumers use Google due to its helpfulness, suggesting a lack of alternative options is not the driving factor.

Ongoing Legal Troubles for Google

Google's legal hurdles are extensive, including significant lawsuits from the US Department of Justice, which threatens Google's ownership of Chrome and encompasses multiple legal challenges from companies like Epic Games and Yelp. The company also continues to grapple with previous antitrust fines, including a $2.7 billion penalty in the EU.

Conclusion

This £7 billion class action adds yet another layer to Google’s ongoing legal battles that emphasize the growing concerns about competition and consumer protection in the digital marketplace.

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