880,000 Companies Join Class Action! Google Faces £5 Billion Compensation Claim

Alphabet (GOOGL-US) subsidiary Google attempted to block a UK class-action lawsuit over its search advertising practices but was rejected by the court. On Wednesday (5th), the UK Competition Appeal Tribunal ruled that the lawsuit, representing hundreds of thousands of UK businesses, meets the eligibility criteria and can move forward to the next stage of proceedings.

The lawsuit alleges that Google abused its dominant position in mobile operating systems, app distribution, and search advertising markets to charge businesses excessive fees for online advertising, constituting an abuse of market power.

Or Brook, a competition law scholar acting as the representative claimant, along with his legal team, estimates that approximately 880,000 UK businesses qualify for inclusion, with potential compensation claims reaching up to £5 billion (approximately $6.7 billion).

The tribunal stated in its ruling that the class action satisfies the necessary conditions for certification. Eligible UK businesses will automatically be included in the plaintiff group unless they actively choose to opt out. This 'opt-out' mechanism means affected companies do not need to register individually to participate in the lawsuit.

However, this ruling only signifies that the case can proceed further; it does not determine whether Google violated competition laws or whether plaintiffs actually suffered losses. These issues will be addressed in subsequent substantive hearings. The decision does not equate to a finding of guilt against Google. Google's spokesperson has not responded to requests for comment at this time.