Google is facing a major £5 billion lawsuit in the United Kingdom, with claimants accusing the tech giant of abusing its dominance in the online advertising and search markets. The class action lawsuit, filed by a group of UK advertisers, seeks compensation for alleged inflated ad costs caused by Google’s monopolistic practices.
Lawsuit Claims Google Restricted Competition
The lawsuit, spearheaded by competition law expert Or Brook from the University of Leeds, argues that Google restricted fair competition by preventing existing and potential rivals from entering the market. As a result, British companies were left with little choice but to rely on Google for advertising, leading to inflated prices for ads. Brook claims that Google’s actions were designed to stifle competition and solidify its control over the online advertising landscape.
Brook’s argument includes Google’s alleged practice of forcing Android device manufacturers to pre-install its search engine and Chrome browser. By doing so, the lawsuit claims Google restricted user choice and cemented its dominance in the online ecosystem.
Claims of Secret Deals and Soaring Revenues
In addition to the accusations of market manipulation, the lawsuit also alleges that Google engaged in secretive agreements with other tech giants, such as paying Apple billions to remain the default search engine in Safari. These exclusive deals, the lawsuit claims, further entrenched Google’s control over the search and advertising markets, preventing other companies from competing on an even playing field.
The lawsuit covers any UK business that has paid for Google ads between January 1, 2011, and April 15, 2025. As Google generates significant revenue from its advertising business, the claim highlights the economic impact on businesses that relied on its ad services. In 2023, Alphabet, Google’s parent company, reportedly earned an estimated €16.35 billion from search ads alone, showcasing the scale of its dominance in the industry.
UK Regulatory Action and Global Antitrust Scrutiny
The legal battle in the UK comes as the Competition and Markets Authority (CMA) investigates whether Google has abused its market position in the search and advertising sectors. The CMA’s inquiry into Google’s practices underscores the growing concern over the company’s role in shaping the online advertising market.
Globally, regulators are also stepping up their scrutiny of Google’s business practices. In Japan, the government issued a cease-and-desist order against Google, marking the country’s first antitrust response to the company’s alleged anti-competitive behavior.
What’s at Stake for Google?
Google and its parent company Alphabet have yet to comment publicly on the ongoing lawsuit. If the legal battle succeeds, the case could result in significant compensation for affected UK businesses and potentially force Google to overhaul its advertising operations. The case also stands as a key test for global regulators seeking to address the growing power of tech giants like Google.
As the lawsuit progresses, industry experts are closely watching its potential impact on the future of online advertising, as well as its broader implications for competition law in the digital age.
The outcome of this £5 billion lawsuit could reshape the way Google operates in the UK and beyond. If the case leads to successful compensation for businesses and regulatory changes, it could set a powerful precedent for similar actions in other countries. For now, UK advertisers are awaiting justice as they fight for fair competition and better advertising practices in the tech industry.
