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Google Faces £5 Billion UK Lawsuit Over Search Dominance: An In-Depth Analysis

Google faces a landmark £5 billion lawsuit in the UK Competition Appeal Tribunal over alleged market dominance abuses in search advertising. This analysis examines legal claims, potential market impacts, and compliance implications for digital platform operators and advertisers.

Compliance Hub

16 Apr 2025 — 8 min read

Photo by Edho Pratama / Unsplash

Overview of the Lawsuit

Google, the world’s leading search engine and digital advertising platform, is facing a landmark class action lawsuit in the United Kingdom. The suit, filed in the UK Competition Appeal Tribunal on April 16, 2025, seeks damages exceeding £5 billion ($6.6 billion) and accuses Google of abusing its “near-total dominance” in the online search and search advertising markets to inflate prices and stifle competition1 2 6 11.

The legal action is spearheaded by Or Brook, a competition law academic, and is supported by the law firm Geradin Partners. The claim represents hundreds of thousands of UK-based organizations that have used Google’s search advertising services from January 1, 2011, to the present1 5 12.

Key Allegations Against Google

The lawsuit alleges that Google has engaged in a series of anticompetitive practices, including:

Restricting Rival Search Engines: Google is accused of leveraging its market position to hinder the growth and visibility of competing search engines, thereby reinforcing its own dominance and making itself the only realistic option for online search advertising1 7 8 9.
Exclusive Deals with Device Makers: The suit claims that Google entered into agreements with smartphone manufacturers to pre-install Google Search and Chrome on Android devices, and paid Apple billions to ensure Google remains the default search engine on Safari for iPhones1 2 9 11.
Favoring Its Own Ad Services: Google’s search management tool, Search Ads 360, allegedly provides superior functionality and features when used with Google’s own advertising products compared to those of competitors, further entrenching its market power1 12 18.
Overcharging Advertisers: By limiting competition, Google is said to have imposed inflated prices on advertisers, forcing UK businesses to pay more for visibility and reach on its platform than they would in a more competitive market1 3 6 8.

Market Context and Regulatory Background

According to a 2020 study by the UK’s Competition and Markets Authority (CMA), Google controlled 90% of the UK search advertising market’s revenue1 5 8. This dominance has made it nearly impossible for businesses to avoid using Google’s advertising services if they wish to be visible online.

The lawsuit is not an isolated incident. Google has faced mounting scrutiny and legal challenges globally, including:

A €4.3 billion fine from the European Union in 2018 for abusing dominance in the Android ecosystem, a decision Google continues to appeal1.
Ongoing investigations and lawsuits in the US and EU targeting Google and other tech giants for alleged anticompetitive conduct3 6.

Statements from Both Sides

Or Brook, leading the legal action, stated:

“Today, UK businesses and organisations, big or small, have almost no choice but to use Google ads to advertise their products and services. Regulators around the world have described Google as a monopoly and securing a spot on Google’s top pages is essential for visibility. Google has been leveraging its dominance in the general search and search advertising market to overcharge advertisers. This class action is about holding Google accountable for its unlawful practices and seeking compensation on behalf of UK advertisers who have been overcharged.”1 5 8 12

Google responded by dismissing the case as “speculative and opportunistic,” asserting:

“Consumers and advertisers use Google because it’s helpful, not because there are no alternatives. We will argue against it vigorously.”3 5 12

Potential Impact and Industry Implications

If successful, this lawsuit could have far-reaching consequences:

Financial Restitution: Hundreds of thousands of UK businesses could receive compensation for alleged overcharges dating back to 20111 6 20.
Market Reforms: A ruling against Google may force changes to its business practices, potentially lowering advertising costs and opening the market to greater competition8 9.
Global Precedent: The case could set a benchmark for similar actions in other jurisdictions, intensifying regulatory scrutiny of dominant tech platforms worldwide1 3 6.

Comparative Table: Key Points of the UK Google Lawsuit

Aspect	Details
Plaintiffs	Hundreds of thousands of UK businesses and organizations
Lead Claimant	Or Brook (competition law scholar)
Legal Representation	Geradin Partners
Defendant	Google (Alphabet Inc.)
Tribunal	UK Competition Appeal Tribunal
Alleged Damages	£5 billion ($6.6 billion)
Time Period	January 1, 2011 – present
Main Allegations	Abuse of dominance, restricting rivals, inflating ad prices, exclusive deals with device makers
Google’s Market Share	90% of UK search advertising revenue (2020 CMA study)
Google’s Response	Case is “speculative and opportunistic”; intends to defend itself vigorously

Broader Antitrust Landscape

This case is part of a broader movement by regulators in the UK, EU, and US to rein in the power of Big Tech. The UK’s new Digital Markets, Competition and Consumers Act and the EU’s Digital Markets Act both aim to impose stricter rules and heavier penalties on dominant digital platforms that engage in anticompetitive practices1 3 8.

Legal Challenges Facing Meta and Microsoft Compared to Google

Meta (Facebook, Instagram, WhatsApp)

Meta is currently embroiled in one of the most significant antitrust trials in U.S. history. The Federal Trade Commission (FTC) and a coalition of states allege that Meta engaged in a “buy or bury” strategy—acquiring Instagram (2012) and WhatsApp (2014) to eliminate emerging competition and cement its dominance in social networking1 11 13 14. The government argues that these acquisitions deprived consumers of choice, stifled innovation, and allowed Meta to maintain a monopoly, particularly in the so-called “personal social networking” market4 12 14.

Key Points:

Potential Remedies: If the FTC prevails, Meta could be forced to divest Instagram and WhatsApp, breaking up its $1.3 trillion advertising business7 13 14.
Market Definition Dispute: Meta contests the FTC’s narrow definition of the market, arguing it competes with TikTok, YouTube, Snap, and Apple’s iMessage, and that its products are free, making monopoly harm difficult to prove4 9 13.
Global Legal Pressure: In the UK, Meta faces a £2.2 billion class action over alleged abuse of dominance and unfair terms, and it is also involved in data breach litigation10.
Broader Impact: The outcome could reshape digital regulation, investor sentiment, and the future of tech M&A, with courts now more willing to revisit and potentially unwind past mergers8 13.

Microsoft

Microsoft’s current legal challenges differ markedly from those of Meta and Google. Rather than facing major antitrust breakups over market dominance, Microsoft is primarily engaged in litigation related to cybersecurity and the misuse of its generative AI technology.

Key Points:

AI Abuse Lawsuits: Microsoft’s Digital Crimes Unit has filed lawsuits in the U.S. against global cybercriminal networks exploiting generative AI services, including its Azure OpenAI Service, to create and distribute illicit content2 5. These lawsuits target individuals and groups that bypass AI guardrails to generate harmful synthetic material, such as non-consensual intimate images.
Data Breach Litigation: In the UK, Microsoft faces a £1 billion class action over alleged overcharging for business products and is involved in data breach claims related to the use of data for AI training10.
Historical Antitrust Context: Microsoft’s last major antitrust battle was in the late 1990s and early 2000s, when it narrowly avoided a court-ordered breakup. The resulting settlement imposed restrictions that opened the market to new competition, notably benefiting Google6.

Comparison Table: Legal Challenges of Major Tech Giants (2025)

Company	Main Legal Challenge(s)	Key Allegations/Issues	Potential Remedies/Outcomes	Geographic Focus
Google	Antitrust (Search & Ad Tech)	Abuse of dominance in search and advertising, stifling rivals	Breakup of Chrome/Android, fines	US, UK, EU
Meta	Antitrust (Social Networking)	Monopolistic acquisitions (“buy or bury”), unfair market terms	Forced divestiture of Instagram/WhatsApp	US, UK, EU
Microsoft	Cybercrime, AI Abuse, Data Breach	Enabling/targeting AI misuse, alleged overcharging, data use	Disruption of cybercrime, damages	US, UK

Broader Trends

Antitrust Spotlight: Both Meta and Google are at the center of a new wave of antitrust litigation, with U.S. regulators seeking structural remedies, including potential breakups—an approach not seen since the Microsoft case of the late 1990s6.
Class Actions and Data: All three companies, including Microsoft, face growing class action lawsuits in the UK, both for competition law violations and data privacy issues10.
AI and Cybersecurity: Microsoft’s legal focus has shifted from antitrust to combating the misuse of its AI platforms, reflecting the evolving risks in the tech sector2 5.

Conclusion

While Google and Meta are both fighting existential antitrust battles that could result in forced divestitures and fundamental restructuring, Microsoft’s current legal exposure is more focused on cybersecurity, AI misuse, and data-related class actions. The regulatory environment for Big Tech is intensifying globally, with courts and regulators increasingly willing to revisit past mergers, impose structural remedies, and scrutinize data practices6 10. The outcomes of these cases will shape the future of digital competition, innovation, and consumer protection worldwide.

The £5 billion class action lawsuit against Google in the UK represents a pivotal moment in the ongoing battle over digital market dominance. The outcome could reshape how search advertising is conducted, potentially lowering costs and increasing competition for UK businesses. As the case proceeds, it will be closely watched by regulators, advertisers, and tech companies worldwide for its potential to set new legal and economic precedents in the digital age1 3 8 11.