Search engine giant, Google, finds itself in the middle of a substantial lawsuit in the United Kingdom. The company is accused of contributing to rising prices and exacerbating the cost of living crisis.
The legal action alleges, on behalf of every UK consumer, that Google stifled competition within the search engine market, leading to inflated prices throughout the UK economy. According to The Guardian, the claim submitted to the Competition Appeal Tribunal contends that Google violated competition laws, escalating living costs for every UK consumer.
Google stands accused of hindering competition in mobile search operations and leveraging its market dominance to increase prices advertisers pay to appear on Google’s search page. This cost, the suit suggests, is then passed onto the consumers.
Funding for this case is spearheaded by Hereford Litigation, a global litigator for commercial suits. Nikki Stopford, co-founder of Consumer Voice, a consumer rights activist group representing the group in the proceedings, stated, “This action aims to redress the balance – not just by reimbursing individuals for what they’re owed but also by holding Google accountable for its actions.”
Damages amounting to an estimated £7.3 billion are being sought for around 65 million users in the UK over the age of 16, equating to at least £100 per person on average.
Furthermore, the UK’s Competition and Markets Authority (CMA) has also initiated an inquiry to determine if Google has misused its dominant position, specifically in advertising technology.
The lawsuit accuses Google of saturating its search pages with paid ads, pressuring companies to pay more for “clicks” rather than relying on consumers to find their sites organically. The claim argues that a more competitive search engine would choose ads based on relevance to the user over the price an advertiser pays.
On the flip side, a spokesperson for Google responded, “This case is speculative and opportunistic. We will robustly defend against it. People use Google because it’s helpful. We only profit if ads are relevant and meaningful, as reflected by the clicks—at a price set by a real-time auction.” The representative further noted, “Advertising plays a crucial role in helping people discover new businesses, causes, and products.”
Google, an American multinational technology company specializing in internet-related services, is no stranger to legal challenges concerning its dominant market position. Over the years, regulatory bodies across various countries have scrutinized its practices, especially in the realm of search and advertising.
This recent lawsuit in the UK is a significant development in an ongoing global conversation about the role and responsibilities of tech giants in today’s digital landscape.
