Google faces $9 billion UK lawsuit after US monopoly ruling

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Recap: Shortly following a historic courtroom defeat in the United States, Google must also contend with a UK lawsuit worth almost $9 billion. The cases involve the company’s supremacy over the search engine and web browser markets, which regulators on both sides of the Atlantic deem anti-competitive.

The UK Competition Appeal Tribunal (CAT) has rejected Google’s request to dismiss a £7 billion ($8.8 billion) consumer lawsuit against the company’s search and advertising businesses. The decision adds another case to Google’s now global regulatory struggle.

Consumer rights advocate Nikki Stopford launched the claim on behalf of every UK resident over 16 who bought goods from businesses in the country that used Google’s ad services between January 1, 2011, and September 7, 2023. The lawsuit asserts that the company’s commanding lead in the online search and advertising markets allowed it to raise ad prices for businesses, which passed the costs down to consumers. The opt-out claim automatically includes all affected customers.

Additionally, the lawsuit opposes Google’s practice of forcing Android device manufacturers to pre-install the company’s Chrome browser and make Google their default search engine. It also condemns the company’s billions in payments to Apple to make iOS default to Google search.

The CAT case, which Google challenged in September, partially hinges on a 2018 decision in which the European Commission fined the company €4.34 billion ($4.5 billion) over the same policies. It also follows a US judge’s monumental recent declaration that Google represents an unlawful monopoly.

In a decision that could shake the tech landscape, the Department of Justice recommended that the company sell Chrome, license out its internal data, cease its search engine revenue deals with manufacturers, and offer publishers opt-out clauses for its AI model training. If Google loses its appeal and the DOJ finds the remedies insufficient, the agency might force the tech giant to sell Android as well.

Google and Apple also recently drew ire from the UK’s Competition and Markets Authority. The regulator criticized the companies’ revenue-sharing deal, Safari and Chrome’s mobile web browser market dominance, and Apple’s rules restricting iOS browser development.

Experts and claimants argue that Google’s unique position threatens the open web and raises insurmountable barriers for smaller rivals like DuckDuckGo, Bing, and Firefox. According to StatCounter, Google commands 80 percent of the search engine market and 60 percent of the web browser sector.

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