Previous estimates said around 65million people could be included in the class action lawsuit and would get a compensation payment worth around £100 per person if successful
A class action lawsuit against Google worth an estimated £7billion has been given the green light to go ahead.
The lawsuit – which is being lead by the legal firm Hausfeld & Co LLP and consumer rights activist and founder of the group Consumer Voice Nikki Stopford – was certified by the UK Competition Appeal Tribunal (CAT) earlier this month. The body – which decides cases which involve competition or economic regulatory issues – ruled against Google’s appeal against the class action.
The claim was first officially launched against Google in September 2023, and was the final step it needed before it can go ahead for a trial. If successful, it could see millions of Brits receive compensation payouts. A date for a potential trial has not been yet been confirmed.
The lawsuit argues that Google’s dominance within online search engines stifled the market and allowed it to raise advertisement prices for businesses, which passed the costs down to consumers. The claim says Google broke competition law which raised the cost of living for all UK consumers.
To back up the argument, the claim alleges that Google Google “forced” mobile phone handset manufacturers to pre-install the Google Search and Google Chrome browser apps on devices that used Google’s Android operating system and allegedly paid billions to Apple to ensure that Google was the default search engine on all devices, such as the iPhone, that used Apple’s iOS operating system.
Paul Colpitts, Google UK’s senior counsel, dismissed the claims as “speculative and opportunistic,” maintaining that people choose Google for its quality, not a lack of alternatives. However, the CAT rejected these arguments in full, including its attempt to have the claim struck out.
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 opt out. The lawsuit covers all UK-domiciled consumers aged 16 and over who purchased goods or services from a business selling in the UK which used search advertising services provided by Google. Previous estimates said around 65million people could be included who would see a compensation payment of around £100 per person if it’s successful.
The class action says that those who join will not pay costs or fees to participate as it is being funded by global commercial litigation funder Hereford Litigation. “This green light from the tribunal is a significant victory for UK consumers,” Nikki Stopford said.
“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.
“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 for the harm caused by its conduct.”
The decision is the latest setback for the tech giant, coming after the US Department of Justice proposed that the company be forced to sell its Chrome web browser, among other remedies, after a US judge ruled earlier this year that the business ran a “monopoly” in search.
Luke Streatfeild, Partner at legal firm Hausfeld & Co LLP added: “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.”
In response to the CAT ruling, a Google spokesman said: “We still believe this case is speculative and opportunistic – we will argue against it vigorously. People use Google because it is helpful; not because there are no alternatives.”
