The lawsuit, filed on behalf of all consumers in the UK with the UK Competition Appeal Tribunal, seeks damages of around £7 billion ($8.7 billion).
The plaintiffs allege that Google violated competition laws by eliminating search competition on mobile devices and using its dominant market position to increase the prices advertisers pay to be featured on Google search results.
Google logo on tablet screen. (Photo: AFP/VNA)
These advertising costs are then passed on to consumers, forcing them to pay more for the goods and services they purchase, the lawsuit says.
The plaintiffs argued that Google abused its dominant position by tying its Search functionality to other apps and services, such as requiring smartphone manufacturers to pre-install the Google Search app and Google Chrome browser in order to obtain a license to use the Google Play app store.
The lawsuit also states that Google paid Apple to ensure that Google was the default search engine for the Safari browser on Apple devices like the iPhone.
“This is a clear violation of competition law, and consumers should pay the price,” said Nikki Stopford, a consumer advocate who is representing the class in the lawsuit. She said the lawsuit seeks to hold Google accountable for its repeated violations of the law and recover the money it owes consumers.
According to consumer advocacy group Consumer Voice, the lawsuit is being brought on behalf of 65 million consumers in the UK. If successful, each plaintiff could be awarded around £100 in compensation.
In response, a Google spokesperson called the lawsuit “speculative and opportunistic,” and said the company “will respond vigorously.”
“People use Google because it’s useful,” Google stressed. “We only make money when ads are useful and relevant, as indicated by clicks — at prices set through real-time auctions.” Google also added that ads play an important role in helping people discover new businesses, new causes, and new products.
Google has previously faced lawsuits seeking billions of dollars in compensation for publishers who lost advertising revenue. Google and other US tech giants have also faced investigations from US, UK and European Union (EU) regulators in recent years.
(Source: Tin Tuc Newspaper)
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