UK Competition Court Throws Out Google’s Challenge to £7Bn Consumer Lawsuit, Paving Way for Full Court Showdown
The UK Competition Appeal Tribunal (CAT) has certified the £7 billion claim against Google brought by Nikki Stopford, a consumer rights campaigner, on behalf of tens of millions of UK consumers – rejecting Google’s attempt to torpedo the claim early, and adding to the Big Tech firm’s legal and regulatory woes.
The specialist UK court will require Google to defend its longstanding conduct in the search engine market, after approving the landmark legal action brought by Nikki Stopford and legal firm Hausfeld & Co LLP.
The claim accuses Google of exploiting its dominance in the search market to increase advertising costs, which were ultimately passed on to consumers. With certification now secured, millions of UK consumers are poised to pursue compensation for the economic harm caused by Google’s conduct.
The CAT’s decision is the latest in a series of setbacks for Google’s parent company Alphabet, which is fighting to preserve its all-important dominance in online search globally. Earlier this month, the US Department of Justice (DoJ) proposed that the US courts should force Google to sell its Chrome web browser, prohibiting Google from entering into agreements that make it the default search engine on smartphones and browsers, and additional restrictions to ensure its Android smartphone software does not favour Google Search.
The full CAT judgment can be viewed here. The UK court dismissed Google’s arguments in full, including its attempt to have the claim struck out. The CAT held that Ms Stopford had put forward a serious case and 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
The DoJ action follows a long legal fight brought by the DoJ and several Attorneys General in the US, culminating in a judgment in August 2024 by the District Court of Columbia, which found that Google’s conduct is anti-competitive and unlawful.
This judgment also supports Nikki Stopford’s claim that Google’s commercial agreement with Apple foreclosed the market for search on iOS devices, as do recent findings by the UK Competition and Markets Authority.
Meanwhile, 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).
Nikki Stopford, the class representative in the action, said:
“This green light from the tribunal is a significant victory for UK consumers. Almost everybody uses Google as their go-to search engine, trusting it to deliver quality results at no cost. But its service isn’t genuinely free because its dominance has resulted in increased costs for consumers. Google has been warned repeatedly by competition regulators. Yet it continues to rig the market to charge advertisers more, which raises the prices they charge consumers. This action seeks to promote healthier competition in digital markets, and to hold Google accountable and ensure that consumers are compensated for the harm caused by its conduct.”
Luke Streatfeild, Partner at legal firm Hausfeld & Co LLP, who is leading the litigation, said:
“This judgment is good news for UK consumers, as the case for compensation brought by our client on their behalf can now proceed to trial. The judgment is also helpful in clarifying the standard for assessing exclusionary conduct by dominant companies, in particular in digital markets with high barriers to entry, and it will be a useful reference point in future cases that aim to promote fairer competition and better outcomes for consumers in those marketplaces.”
Further information
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 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
- 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
- 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.
