Google is facing a significant legal challenge in the UK, with approximately 250,000 businesses filing a class action lawsuit claiming the tech giant overcharged them for online advertising. The lawsuit, which seeks damages of up to £5 billion ($6.6 billion), was filed at the Competition Appeal Tribunal (CAT) on April 15, 2025, by law firm Geradin Partners. The firm argues that Google has abused its dominant position in the online search and search advertising markets, leading to inflated prices for advertisers.
According to the claim, Google has engaged in practices that have effectively shut out competition. This includes contracting phone manufacturers to pre-install the Google Search application and the Chrome browser on Android devices, as well as paying Apple to make Google the default search engine on iPhones. Such actions, the plaintiffs argue, have allowed Google to dominate the market, ensuring its search engine is more functional and feature-rich compared to its competitors.
Damien Geradin, the founding partner of Geradin Partners, stated, "Through a range of deliberate and exclusionary practices, [Google] has sought to eliminate its rivals and dominate the search advertising market, ultimately overcharging UK advertisers by billions of pounds." This lawsuit is particularly notable as it marks the first claim of its kind in the UK, specifically seeking redress for businesses that have been forced to pay inflated prices for advertising space on Google’s platforms.
In response to the allegations, a Google spokesperson described the lawsuit as "yet another speculative and opportunistic case," asserting that consumers and advertisers choose Google because it is helpful, not due to a lack of alternatives. The spokesperson emphasized, "We will argue against it vigorously." This sentiment reflects Google’s broader strategy of defending its market practices, which it claims are beneficial to users.
The legal action comes amidst ongoing scrutiny of Google’s business practices. In 2023, a similar class action was filed against Google in the UK, seeking £7 billion in compensation for consumers, with businesses believed to be passing on advertising costs to customers. Moreover, last year, a £13.6 billion claim was initiated against Google for alleged anti-competitive behavior in digital advertising, both of which are still pending in court.
In addition to these lawsuits, Britain’s Competition and Markets Authority (CMA) has launched an investigation into Google’s alleged dominance in the search-engine market, focusing on its impact on both consumers and businesses. The CMA's investigation could potentially lead to Google being assigned "strategic market status," which would subject it to special regulatory requirements under new UK laws. This development is part of a broader trend in the UK and EU towards increased regulation of major tech companies.
Globally, regulators have frequently described Google as a monopoly, with its services accounting for a staggering 90% of search queries. This dominance is critical for businesses, as securing a prominent position on Google’s search results is essential for visibility and attracting customers. Or Brook, a competition law expert representing the businesses in the lawsuit, noted, "Regulators around the world have described Google as a monopoly and securing a spot on Google’s top pages is essential for visibility." She emphasized that businesses often feel they have no choice but to use Google Ads to reach their target audience.
As the legal proceedings unfold, the outcome could have significant implications not only for Google but also for the broader landscape of online advertising and competition. With increasing scrutiny from regulators and mounting legal challenges, Google’s practices in the UK are under the microscope like never before.
This latest lawsuit adds to a growing list of legal challenges facing Google and highlights the ongoing concerns regarding the power and influence of major tech companies in the digital economy. As businesses and regulators push back against perceived monopolistic practices, the future of online advertising may be at a crossroads.
In conclusion, the class action lawsuit against Google represents a critical moment in the ongoing debate over competition in the tech industry. With substantial financial stakes and potential regulatory repercussions, the case will be closely watched by businesses, consumers, and regulators alike.
