The UK Competition Appeal Tribunal (CAT) has certified a £7bn collective action against Google.
The specialist UK court will require Google to defend its long-standing conduct in the search engine market after approving the landmark legal action brought by Nikki Stopford, co-founder of Consumer Voice, and legal firm Hausfeld & Co LLP.
The claim accuses Google of exploiting its dominance in the search market to increase advertising costs.
Stopford will represent all UK-domiciled consumers aged 16 years or over who, during the period from 1 January 2011 until 7 September 2023 (inclusive), purchased goods and/or services from a business selling in the UK that used search advertising services provided by Google. The action is being brought as an opt-out collective action, meaning that everyone in the UK affected is automatically included as a claimant in the case unless they choose not to be.
The collective action argues that Google used its dominant position in the UK search engine market to overcharge advertisers and that these costs were then passed directly on to consumers.
Stopford’s case against Google and its parent, Alphabet, is that under arrangements dating from at least 2009, Google permitted its app store to be installed on Android mobile devices only if Google’s own search app was also installed, together with Google’s Chrome browser. The case also concerns Google’s agreements with Apple under which Google is awarded exclusive default search engine status on the Safari browser that is pre-installed on Apple’s devices in return for a share of Google’s corresponding mobile search advertising revenues.
“This green light from the tribunal is a significant victory for UK consumers,” said Stopford. “Almost everybody uses Google as their go-to search engine, trusting it to deliver quality results at no cost. But its service isn’t genuinely free because its dominance has resulted in increased costs for consumers.
Almost everybody uses Google as their go-to search engine, trusting it to deliver quality results at no cost. But its service isn’t genuinely free because its dominance has resulted in increased costs for consumers Nikki Stopford, Consumer Voice
“Google has been warned repeatedly by competition regulators, yet it continues to rig the market to charge advertisers more, which raises the prices they charge consumers. This action seeks to promote healthier competition in digital markets, and to hold Google accountable and ensure that consumers are compensated,” she added.
Luke Streatfeild, partner at legal firm Hausfeld & Co LLP, who is leading the litigation, said: “This judgment is good news for UK consumers, as the case for compensation brought by our client on their behalf can now proceed to trial. The judgment is also helpful in clarifying the standard for assessing exclusionary conduct by dominant companies, in particular in digital markets with high barriers to entry, and it will be a useful reference point in future cases that aim to promote fairer competition and better outcomes for consumers in those marketplaces.”
The CAT decision follows a ruling in which Alphabet was found to have acted in an anti-competitive manner in the US. The US Department of Justice is now looking to force the company to offload its Chrome browser.
