Alphabet Inc.’s Google is confronting a £5 billion ($6.6 billion) class action lawsuit in the United Kingdom, accused of exploiting its “near-total dominance” in the online search market to inflate advertising prices.
The lawsuit, filed on Tuesday in the U.K. Competition Appeal Tribunal (CAT), alleges that Google’s anti-competitive practices have restricted rival search engines, reinforcing its market stronghold and overcharging advertisers since January 1, 2011. The case, brought by competition law academic Or Brook on behalf of hundreds of thousands of U.K.-based organizations, marks another chapter in the global scrutiny of Big Tech’s market power.
The class action, represented by law firm Geradin Partners, claims Google abused its dominant position to make itself the only viable destination for online search advertising, enabling it to charge higher prices than a competitive market would allow.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
Or Brook, the lead claimant, stated, “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.”
She added, “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 lawsuit highlights several specific practices allegedly used by Google to stifle competition:
Exclusive Deals with Smartphone Makers: Google is accused of contracting phone manufacturers to pre-install Google Search and the Chrome browser on Android devices, limiting access to rival search engines.
Payments to Apple: The suit claims Google paid Apple billions to ensure it remained the default search engine on Safari, further entrenching its market position on iOS devices.
Favoritism in Search Ads 360: Google allegedly designed its search management tool, Search Ads 360, to offer superior functionality and features for its own advertising products compared to those of competitors, creating an uneven playing field.
A 2020 market study by the U.K.’s Competition and Markets Authority (CMA) bolsters these claims, revealing that Google accounted for 90% of all revenue in the search advertising market and 90% of search queries, with over 200,000 U.K. businesses relying on its services for advertising.
Google’s Response
Google has dismissed the lawsuit as “yet another speculative and opportunistic case” and vowed to “argue against it vigorously.” A spokesperson told CNBC, “Consumers and advertisers use Google because it is helpful, not because there are no alternatives.”
The company argues that its market position stems from the quality and utility of its services rather than anti-competitive behavior.
This lawsuit is the latest in a series of legal and regulatory challenges facing Google and other U.S. tech giants. In 2018, the European Union fined Google €4.3 billion ($4.9 billion) for abusing the dominance of its Android operating system by mandating the pre-installation of Chrome and Search alongside its Play Store. Google continues to appeal this penalty. More recently, in January 2025, the U.K.’s CMA launched an investigation into Google’s search services under the Digital Markets, Competition, and Consumers Act, focusing on its impact on consumers, advertisers, and competitors.
The case also aligns with broader global actions against Big Tech. This week, Meta Platforms faced a U.S. Federal Trade Commission antitrust trial that could force the divestiture of Instagram and WhatsApp. Meanwhile, Microsoft and Amazon are under CMA scrutiny for alleged anti-competitive practices in the U.K.’s cloud computing market, following a £1 billion lawsuit against Microsoft in December 2024.
The £5 billion lawsuit follows a separate £7 billion class action certified by the CAT in November 2024, led by consumer rights advocate Nikki Stopford. That case, which focuses on Google’s practices passing higher advertising costs to consumers, was allowed to proceed to trial after the CAT rejected Google’s attempt to dismiss it. The Stopford lawsuit cites similar allegations, including Google’s deals with Apple and Android manufacturers, and draws on a 2024 U.S. Department of Justice ruling that found Google’s search practices anti-competitive.
The U.S. ruling proposed remedies such as prohibiting Google from securing default search engine agreements, selling Chrome, and restricting Android’s favoritism toward Google Search. These developments lend weight to the U.K. lawsuits, suggesting a growing international consensus on Google’s market abuses.
The £5 billion lawsuit could have severe implications for Google’s business model and the digital advertising industry. A successful claim might result in significant compensation for affected U.K. advertisers and force Google to alter its practices, potentially opening the market to greater competition. The case also underscores the U.K.’s increasing assertiveness in regulating digital markets, bolstered by new powers under the Digital Markets, Competition and Consumers Act.
However, with the lawsuit filed just days ago, legal proceedings are in their early stages. Google’s vigorous defense and the complexity of proving anti-competitive harm suggest a protracted battle ahead.
Posts on X reflect a mix of skepticism and concern about the lawsuit, with some users describing it as a “UK shakedown” while others highlight Google’s long-standing dominance in search. The case has drawn attention from financial and legal analysts, with outlets like Reuters and The Financial Express framing it as a significant challenge to Google’s market power.