Competition boffin launches class action against Google UK over search dominance

Alleges £5B in harm caused by Android deals, anticompetitive actions

A British academic has launched a class-action suit against Google, alleging abuse of its market dominance in online search caused £5 billion ($6.6 billion) of damage to advertisers.

Leeds University’s Associate Professor of Competition Law and Policy Dr Or Brook, who also serves as Deputy Director of the Centre for Business Law and Practice, brought the case on behalf of hundreds of thousands of UK-based organizations that use Google’s search advertising services.

She is represented by the competition law firm Geradin Partners, whose Founding Partner Damien Geradin said: “Google is one of the most powerful companies in the world. However, through a range of deliberate and exclusionary practices, it has sought to eliminate its rivals and dominate the search advertising market, ultimately overcharging UK advertisers by billions of pounds.”

The suit accuses Google of requiring makers of Android devices to install the Chrome browser and a Google Search widget. It also claims Google pays Apple billions to have its search engine installed as the default in Apple’s Safari browser, which is pre-installed on iPhones.

Dr Or Brook said: "UK businesses and organisations have almost no choice but to use Google ads to advertise their products and services. Regulators around the world have described Google as a monopoly and securing a spot on Google’s top pages is essential for visibility. Google has been leveraging its dominance in the general search and search advertising market to overcharge advertisers.

“This class action is about holding Google accountable for its unlawful practices and seeking compensation on behalf of UK advertisers who have been overcharged.”

The case has been launched in the UK Competition Appeal Tribunal (CAT).

A Google spokesperson said: “This is yet another speculative and opportunistic case - and we will argue against it vigorously. Consumers and advertisers use Google because it helpful, not because there are no alternatives”

The case follows the January launch of an investigation into Google’s market power by the UK’s Competition and Markets Authority (CMA).

At the time that probe commenced, a Google spokesperson said the company would “continue to engage constructively with the CMA to ensure that new rules benefit all types of websites and still allow people in the UK to benefit from helpful and cutting-edge services."

The issues under consideration in the case have already been litigated in other nations, most recently Japan which this week ordered Google to end its practice of requiring Droid-makers to bundle its apps and services. ®