A UK court has filed a £5 billion class action lawsuit against Google, alleging the company’s exclusionary practices have stifled competition in the internet search market. The claim centers around Google’s dominance and alleged efforts to charge higher prices for advertisements.
Google Sued for £5bn in the UK Over Allegations of Shutting Out Rivals
A class action filed at the Competition Appeal Tribunal argues that Google has taken actions to charge higher prices for advertisements, alleging the company shut out competition in the internet search market. The claim is valued at up to £5 billion.
Google was founded in 1998 by Larry Page and Sergey Brin while they were Ph.D. students at Stanford University.
Initially, it was a search engine called Backrub, but later renamed to Google.
The name 'Google' comes from the mathematical term 'googol,' which represents a huge number.
Today, Google is a multinational technology giant with a market value of over $1 trillion.
Its search engine processes over 40,000 search queries every second.
Google's innovations include Gmail, Google Maps, and Android operating system.
How Google‘s Dominance Affects Advertisers
The allegations against Google state that the company has ensured its search engine had better functionality and more features than competitors, making it difficult for businesses to advertise on other platforms. According to competition law expert ‘Or Brook’ , who filed the claim, regulators have described Google as a monopoly, stating that securing a spot on Google‘s top pages is essential for visibility.
The Impact of Preinstalled Apps
Google contracted phone makers to preinstall its search app and Chrome browser on Android devices, while also paying Apple to make it the default search engine on iPhones. This move allegedly aimed to shut out competition in the market. ‘Brook’ claims that businesses had almost no choice but to use Google ads to advertise their products and services.
The Competition Investigation
The UK’s Competition and Markets Authority launched an investigation into Google‘s search services in January, citing that millions of people and businesses rely on its services, which account for 90% of searches. The investigation is ongoing, with the authority stating that securing a spot on Google‘s top pages is essential for visibility.
A spokesperson for Google stated that the claim is ‘yet another speculative and opportunistic case’ and that consumers use the company because it provides helpful services, not due to a lack of alternatives.
- theguardian.com | Google sued for £5bn in UK over allegations of shutting out rivals
