Multi-billion Google Search claim certified by UK Competition Appeal Tribunal
The Competition Appeal Tribunal (CAT) has certified a £7 billion claim against Google over its alleged anticompetitive behaviour in search, meaning that it can now proceed to trial.
The claim is brought by Nikki Stopford, a UK-based consumer champion with 25 years’ experience advocating and raising industry standards for consumers. Ms Stopford alleges that Google uses its market dominance to raise the prices paid by advertisers for prominence on the Google search page. Those increased prices are then systematically passed on to consumers, who are charged higher prices for the goods and services they buy.
The CAT dismissed Google’s arguments, including its attempt to have the claim struck out. The CAT held that Ms Stopford had put forward a serious case and therefore authorised her to act as the class representative and permitted the claim to proceed to trial.
Following the CAT’s certification, Ms Stopford will represent all UK-domiciled consumers aged 16 years or over who, during the period from 1 January 2011 until 7 September 2023 (inclusive), purchased goods and/or services from a business selling in the UK, which used search advertising services provided by Google. 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 case against Google
The collective action argues that Google used its dominant position in the UK search engine market to overcharge advertisers and that these costs were then passed directly on to the consumer.
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
Google 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.
Other proceedings
A complaint by the Department of Justice (DoJ) and several Attorneys General in the US in January 2021 led to a judgment in August 2024 by the District Court of Columbia which found that Google’s conduct is anti-competitive and unlawful. This judgment as well as recent findings by the UK Competition and Markets Authority, support the claim that Google’s commercial agreement with Apple foreclosed the market for search on iOS devices.
Furthermore, the European Commission imposed the biggest fine in history on Google for the anti-competitive practices in Android.
It is alleged that the abuses by Google are possible because Google is set as the default search engine account for at least 94% of the mobile device sector, by usage. Google Ads generated over $224 billion in revenue in 2022, accounting for almost 80% of parent company Alphabet’s revenue ($283 billion in 2022).
The certification judgment also follows the remedies recently proposed by the DoJ regarding Google, following the District Court of Columbia’s judgment. These remedies aim to prevent Google from abusing its dominant position in online search. The DoJ’s proposals include prohibiting Google from entering into agreements that make it the default search engine on smartphones and browsers, requiring Google to sell its Chrome web browser, and imposing additional restrictions to ensure its Android smartphone software does not favour its search engine.
Nikki Stopford, the proposed class representative in the action, said:
"This is the first step in ensuring consumers get back what they are owed due to Google’s anti-competitive actions. Google has unlawfully fixed things so it is the default search engine we see on practically all devices in the UK. With more than 90% of our searches starting on Google, the company has been able to abuse this advantage by raising the prices advertisers pay for the sponsored links you see when you use Google to search for something. This leaves the businesses we buy from paying more for clicks than they would do in a competitive market and passing these higher costs on to shoppers."
Luke Streatfeild, Partner at Hausfeld, leading the litigation, said:
“This judgment is good news for UK consumers, as our client’s case for compensation on their behalf can now proceed to trial. The judgment also provides helpful clarity on the test for assessing anti-competitive conduct by dominant companies such as Google, and the standard for pleading a counterfactual, and will likely be a useful reference point for the collective proceedings regime more generally.”
More info
The certified claim against Google is being brought at the CAT against Alphabet Inc., Google LLC, Google Ireland Limited and Google UK Limited under CAT Claim No. 1606/7/7/23.
Who is eligible to be part of the claim?
All that is necessary is that a consumer purchased goods or services from a business who advertised using search advertising services provided by Google. It is not necessary for them to have seen the goods or services advertised on Google, or used Google to purchase the goods or services. This is because the claim says that these higher prices affected all of a business’ products if it advertised on Google.
Those who are interested in finding out more about the claim and signing up for regular updates should visit www.searchclaim.co.uk.
About the class representative
Nikki Stopford is co-founder of Consumer Voice and brings 25 years of experience in advocating and raising industry standards for consumers. She is Chair of the British Standard Institute’s Consumer Forum and a member of its Standards Policy and Strategy Committee. She has held executive leadership roles running successful digital and content-led consumer-facing businesses that have engaged and advocated for millions of consumers. Most notably, she was Group Director of Research and Publishing at Which? – the UK's largest consumer organisation – for more than 10 years.
Additional notes
Affected claimants, on whose behalf the class action is brought, will not pay costs or fees to participate in this legal action, which is being funded by global commercial litigation funder Hereford Litigation. The action is insured, which means that class members have no adverse cost risk in relation to the claim.
Ms Stopford is represented by:
- Hausfeld & Co. LLP, Partners Luke Streatfeild and Simon Bishop, supported by Counsel Jonothan Broadbent and Stella Gartagani, Associates Natalie Jukes, Ginevra Bicciolo and Lisa Amrani and paralegals Martha Papapostolou and Alice Caroff.
- Ben Lask KC of Monckton Chambers; Daniel Jowell KC and Colin West KC, both of Brick Court Chambers; Mehdi Baiou and (formerly) Andrew Lomas, both of One Essex Court.
- Charles Rivers Associates, Oliver Latham, Vice President, supported by Director Sam Marden and Senior Associate Liam Connolly
- Rosamilia Consulting, Davide Rosamilia, co-founder and principal consultant
Media enquiries
Palatine Communications - Conal Walsh / Richard Seed / Joshua Wolff
SearchClaim@palatine-media.com
