CNBC reports Google has been sued in the UK for £5 billion ($6.6 billion) in potential damages over allegations that the U.S. tech giant abused its "near-total dominance" in the online search market to drive up prices. This was a class action lawsuit filed in the U.K. Competition Appeal Tribunal claims Google abused its position to restrict competing search engines.
According to CNBC, the suit is being brought on behalf of all U.K.-based organizations that used Google’s search advertising services from Jan. 1, 2011, up until the time the claim was filed. A 2020 market study from the U.K.’s competition regulator found that Google earned 90% of all revenue in the search advertising market.
“Today, UK businesses and organisations, big or small, have almost no choice but to use Google ads to advertise their products and services,” Brook said in a statement Tuesday. “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,” she added. “This class action is about holding Google accountable for its unlawful practices and seeking compensation on behalf of UK advertisers who have been overcharged.”
Google called the case “yet another speculative and opportunistic case” and said that it plans to “argue against it vigorously.”
“Consumers and advertisers use Google because it helpful, not because there are no alternatives,” a spokesperson told CNBC.
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