Google Faces €5.8 Billion UK Lawsuit for Overcharging Advertisers

Google Hit with €5.8 Billion Lawsuit in UK Over Alleged Ad Overcharging

UK Class Action Accuses Google of Abusing Search Market Dominance to Inflate Ad Prices

Google is facing a massive £5 billion (€5.83 billion) class action lawsuit in the United Kingdom over claims that its dominance in the search engine market allowed it to artificially inflate advertising costs, harming thousands of British businesses.

The lawsuit, filed on behalf of UK-based advertisers, argues that Google’s parent company Alphabet engaged in anticompetitive practices that forced companies to rely on Google Ads while paying “supra-competitive” prices due to a lack of real alternatives in the market.

Academic Behind the Suit: Competition Law Professor Or Brook

The class action is spearheaded by Or Brook, an associate professor in competition law at the University of Leeds, who alleges that Google used its market power to suppress competition in both general search and search advertising.

Brook claims Google effectively excluded actual and potential rivals, giving the tech giant an unchecked ability to raise ad prices and secure massive profits.

"UK businesses and organisations, big or small, have almost no choice but to use Google ads," Brook said. "This class action is about holding Google accountable for its unlawful practices and seeking compensation on behalf of UK advertisers who have been overcharged."

Key Allegations: Android Preinstalls, Safari Default Deal

The lawsuit cites two major mechanisms through which Google allegedly consolidated its control:

• Preinstallation Agreements: Google is accused of forcing phone manufacturers to preinstall Google Search and Chrome on Android devices, ensuring its services remain the default option and reducing visibility for competitors.

• Safari Deal with Apple: The suit also claims that Google paid “billions of pounds” to Apple to maintain its position as the default search engine on Safari, effectively blocking users from easily switching to rival platforms.

Financial Impact and Scope

According to the lawsuit, Google generated an estimated £14 billion (€16.35 billion) in revenue from UK-based search advertising in 2023 alone. The class action seeks compensation for any business or organization in the UK that purchased Google ads between January 1, 2011 and April 15, 2025.

If successful, the claim could result in one of the largest competition-related payouts in UK legal history.

Regulatory Scrutiny Intensifies

The class action follows growing international scrutiny of Google’s business practices:

• The UK’s Competition and Markets Authority (CMA) has launched its own investigation into Google’s role in the search and ad markets.

• In Japan, regulators this week issued a historic cease-and-desist order against Google for violating antitrust laws — the first of its kind against the company in that country.

These moves reflect a broader global trend of increased regulatory pressure on Big Tech firms, particularly in areas where market dominance intersects with digital advertising and data control.

Google Yet to Respond

As of this publication, Alphabet has not issued an official response to the UK lawsuit. A request for comment from Euronews Next went unanswered.

In past legal challenges, Google has defended its practices by arguing that users and advertisers benefit from its platforms due to their innovation, scale, and relevance — positions that are likely to be tested again in the coming months.

Stay tuned to The Horizons Times for more on tech industry regulation, global antitrust cases, and the evolving legal challenges facing digital giants.