Google is facing a substantial 5 billion pounds ($6.6 billion) class action lawsuit in the UK for allegedly abusing its “near-total dominance” in the online search market to inflate advertising prices. A lawsuit has been filed with the UK Competition Appeal Tribunal , accusing Google of leveraging its powerful position to unfairly restrict competing search engines.
According to a report by CNBC, this alleged anti-competitive behaviour allowed Google to solidify its dominance in the search market and establish itself as the indispensable platform for online search advertising .
The legal action is being headed by competition law academic Or Brook, representing hundreds of thousands of UK-based organisations that utilised Google's search advertising services between January 1, 2011 and the filing date.
“Today, UK businesses and organisations, big or small, 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,” Brook said.
‘Advertisers use Google because it is helpful’
Responding to the lawsuit, Google dismissed the case as “yet another speculative and opportunistic case” and said it intends to “argue against it vigorously.”
“Consumers and advertisers use Google because it helpful, not because there are no alternatives,” a company spokesperson told the publication.
The lawsuit’s foundation is partly supported by a 2020 market study conducted by the UK’s competition regulator, the Competition and Markets Authority (CMA), which revealed that Google commanded a staggering 90% of all revenue generated in the search advertising market.
The legal filing details several alleged steps taken by Google to stifle competition in the search sector. These include entering into agreements with smartphone manufacturers to pre-install Google Search and Chrome on Android devices, and making substantial payments to Apple to ensure Google remains the default search engine on its Safari browser.
According to a report by CNBC, this alleged anti-competitive behaviour allowed Google to solidify its dominance in the search market and establish itself as the indispensable platform for online search advertising .
The legal action is being headed by competition law academic Or Brook, representing hundreds of thousands of UK-based organisations that utilised Google's search advertising services between January 1, 2011 and the filing date.
“Today, UK businesses and organisations, big or small, 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,” Brook said.
‘Advertisers use Google because it is helpful’
Responding to the lawsuit, Google dismissed the case as “yet another speculative and opportunistic case” and said it intends to “argue against it vigorously.”
“Consumers and advertisers use Google because it helpful, not because there are no alternatives,” a company spokesperson told the publication.
The lawsuit’s foundation is partly supported by a 2020 market study conducted by the UK’s competition regulator, the Competition and Markets Authority (CMA), which revealed that Google commanded a staggering 90% of all revenue generated in the search advertising market.
The legal filing details several alleged steps taken by Google to stifle competition in the search sector. These include entering into agreements with smartphone manufacturers to pre-install Google Search and Chrome on Android devices, and making substantial payments to Apple to ensure Google remains the default search engine on its Safari browser.
You may also like
Union Minister Sanjay Seth slams Jharkhand Minister Hafizul Hassan over 'Shariat first' remark, demands treason case
Marvel's Fantastic Four First Steps release date and cast details as trailer finally drops
Inside sickening crimes of 'Britain's most dangerous' inmate as he leaves 'glass cage'
Rio Ferdinand insists Arsenal star would have joined Man Utd 'for the same wages'
CNN presenter insists the media 'censor too much' as he wants to 'show more truth'
