Google is facing a fresh UK lawsuit claiming £25 billon in damages over alleged abuse of its market dominance in online search advertising.
The lawsuit follows other legal challenges the tech giant faced when it comes to online search advertising, including in the UK, EU, and US.
The lawsuit alleges that Google is abusing its market dominance through its deals with mobile device manufacturers, such as Apple, to make it the default search engine.
This, the lawsuit claims, has lead to inflated prices for UK advertisers, affecting around 500,000 to 1.5 million advertisers based in the UK.
Lead by Roger Kaye KC, a former deputy High Court judge, the claim aims to win compensation for those who paid the tech giant for search advertising from 2011, which could reach £25 billion.
The lawsuit hinges on the fact that Google has agreements with device manufacturers ensuring that it is the default search engine on devices and networks, enabling it to dominate the search engine market and therefore, charge higher prices on adverts.
In the US, Google is facing similar allegations over its search engine advertisement dominance, with a US judge ruling that it held a monopoly in the search market.
Currently, Google is facing pressure and even a potential order from the Department of Justice to break up its digital offerings and sell its browser, Chrome.
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A Google spokesperson called the UK lawsuit “meritless,” saying that “Consumers and advertisers use Google because it’s helpful, not because there are no alternatives.”
Mr Kaye, the leading lawyer of the lawsuit, however, said: “This case marks a significant step in re-establishing a fair and competitive landscape for all advertisers.
“Monopolising the advertising space to the point of abuse cannot continue.”
A similar lawsuit using the same basis as a claim has been launched as a class action in the UK, representing consumers that may have suffered from increase prices in advertising.
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