Consumer advocate sued the tech giant for £7 billion, hired Hausfeld for legal representation.

The UK Competition Appeal Tribunal (CAT) has unanimously certified a £7 billion collective lawsuit against Google, rejecting the tech giant’s bid to have the case dismissed. The claim (No. 1606/7/7/23), spearheaded by consumer rights advocate Nikki Stopford and led by legal firm Hausfeld & Co LLP, alleges Google’s anti-competitive practices that harmed UK consumers.

There are three key allegations in this case, according to the 30-page document:

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1. Exclusion of Competition: The lawsuit accuses Google of using its dominant position in mobile search to stifle competition, inflate advertising costs, and pass these costs onto consumers.

2. Android Restrictions: It is alleged that Google required mobile phone manufacturers to pre-install Google Search and Google Chrome on Android devices.

3. Deals with Apple: Google reportedly paid billions to Apple to secure its position as the default search engine on iOS devices, further consolidating its market control.

The tribunal dismissed Google’s objections and authorized the case to proceed to trial. Stopford has been approved as the class representative in this landmark opt-out collective action, representing all UK consumers aged 16 and older who purchased goods or services from businesses using Google’s advertising services between 1 January 2011 and 7 September 2023. She filed for her claims on 9 September 2023.

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Hausfeld confirmed in a statement it has been hired to defend the consumers and represent them in the court by challenging Google's dominance and secure compensation for UK consumers.

This decision comes amid growing global scrutiny of Google’s dominance in online search. In the United States, the Department of Justice (DoJ) has proposed remedies, including forcing Google to sell its Chrome browser and limiting deals that establish Google as the default search engine on smartphones and browsers. In Europe, the European Commission levied a record fine (€2.42 billion) last September against Google for similar anti-competitive practices in Android.

Google Ads, generating $224 billion in revenue in 2022, accounted for nearly 80% of Alphabet’s total revenue. The lawsuit could significantly impact Google’s business model if the allegations are proven. It is alleged that the abuses are possible because Google is set as the default search engine account for at least 94% of the mobile device sector, by usage.

The defense side includes Google LLC, Google Ireland Limited, Google UK Limited, and their parent company Alphabet Inc.

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