Why are 250,000 UK businesses suing Google?

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Approximately 250,000 UK businesses are suing Google over allegations of abusing its dominant market position to overcharge for online advertising.

Some 250,000 UK businesses have initiated a multi-billion-pound legal claim against Google, alleging that the tech giant engaged in anti-competitive practices. The claim, filed with Britain’s Competition Appeal Tribunal (CAT), asserts that Google exploited its dominant role in the general search and search advertising markets to eliminate rivals and inflate advertising costs for UK businesses. This legal action seeks to recover billions of pounds that businesses claim to have overpaid for advertising space due to Google's alleged exclusionary conduct since 2011.
Allegations of Market Abuse and Exclusion

The core of the lawsuit centres on claims that Google has deliberately employed exclusionary practices to maintain and strengthen its dominance in the search advertising market. Law firm Geradin Partners, representing the businesses, contends that this alleged monopolistic behaviour has forced UK advertisers to pay inflated prices for advertising space on Google's platforms. Regulators globally and courts in the US and EU have previously identified Google's operations as monopolistic and found its conduct to be in breach of competition laws, providing a backdrop to this specific UK claim.
Seeking Redress for Inflated Advertising Costs

This legal action is notable as it represents the first claim of its kind in the UK specifically seeking compensation for harm caused directly to businesses that have been compelled to pay higher-than-fair prices for advertising. The plaintiffs argue that Google's actions since 2011 have systematically excluded competitors, thereby limiting choice and driving up costs for advertisers. The total value of the claim lodged with the CAT amounts to £5 billion (approximately RM29 billion).
Precedent and Related Legal Actions

The current lawsuit against Google follows similar legal challenges in the UK. In 2023, a class action was filed seeking £7 billion on behalf of consumers, with the argument that businesses, in turn, passed on increased costs. Additionally, a £13.6-billion claim was filed last year, also alleging anti-competitiveness within the digital advertising sector. Both of these previously filed cases are still ongoing, indicating a sustained focus on Google's market practices within the UK legal landscape.

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Why are 250,000 UK businesses suing Google?

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