Google hit with £25 billion lawsuit
In a landmark legal move, specialist redress law firm KP Law has filed a substantial £25 billion claim against Google, contending that the tech giant has abused its leading position in the online search advertising market
The case, spearheaded by Roger Kaye KC, a former deputy High Court judge, accuses Google of colluding with device manufacturers to establish itself as the default search option, consequently inflating prices significantly.
This opt-out class action is brought before the Competition Appeal Tribunal, arguing that Google's actions exploited a range of UK advertisers, between 500,000 and 1.5 million, leading to 'excessive and unfair prices' for search advertising. Kaye KC seeks compensation for all affected UK advertisers who paid more for search ads from 1 January 2011 to the date of filing the claim. The anticipated collective compensation could reach up to an eye-watering £25 billion.
What sets this case apart from previous actions against Google is its focus on standalone claims for 'abusive exploitative behaviour', aiming to compensate businesses for the 'supracompetitive' pricing practices employed by the tech giant. The case suggests that by securing its status as the default search option—backed by billions paid to Apple to feature prominently in the Safari browser—Google has effectively excluded its competitors and thus maintained an exceptional level of control over pricing.
Duncan Hedar, head of KP Law's competition department, expresses the ambition behind this legal action. He says “In contrast to previous cases filed in the UK, Mr Kaye KC seeks to take the action one step further by rightly compensating the vast number of businesses who’ve had to suffer the imposition of Google’s abuse of power.” Hedar further highlights that the unlawful conduct has already been substantiated by both the European Commission and a US court, emphasizing that it is time for affected UK advertisers to receive appropriate compensation for the financial consequences they have endured.
In agreement, Roger Kaye KC states, “This case marks a significant step in reestablishing a fair and competitive landscape for all advertisers. Monopolising the advertising space to the point of abuse cannot continue.” The legal battle has garnered support from top experts, including Keystone AI, Andrea Coscelli, the former head of the Competition and Markets Authority, and Professor Andrew Stephen from the University of Oxford’s Said Business School, signaling its potential impact on the advertising sector.