Britain’s Competition and Markets Authority (CMA) also probing Google’s role in the search ecosystem
In what could be a watershed moment for digital advertising in the UK, Google is facing a colossal £5 billion lawsuit from over 250,000 British businesses who allege they’ve been overcharged for search-based advertising for more than a decade.
Filed by competition law specialists Geradin Partners at the UK’s Competition Appeal Tribunal (CAT), the legal claim accuses Google of systematically abusing its market dominance to exclude rivals and inflate ad prices.
The allegations date back to 2011, and if upheld, could trigger the largest redress of its kind for UK advertisers.
“This is the first claim of its kind in the UK that seeks redress for harm caused specifically to businesses who have been forced to pay inflated prices for advertising space on Google pages,” said Damien Geradin, founding partner of the firm.
He contends that the search giant’s “deliberate and exclusionary practices” have deprived UK businesses of a fair digital playing field.
Google’s Mounting Legal Woes in Europe
Google, unsurprisingly, is pushing back — and hard.
A company spokesperson called the claim “speculative and opportunistic”, insisting that advertisers use Google because of its value and effectiveness, not because of a lack of alternatives.
This latest action adds to Google’s mounting legal woes in Europe.
A separate £13.6 billion claim filed last year accused the company of broader anti-competitive conduct in digital advertising.
Additionally, a 2023 class-action suit sought £7 billion in compensation for UK consumers, arguing that higher ad costs were ultimately passed down the chain.
With Britain’s Competition and Markets Authority (CMA) also probing Google’s role in the search ecosystem — and the possibility of assigning it “strategic market status” under upcoming digital regulations — the legal and regulatory noose appears to be tightening.
For marketers, media planners, and brand custodians, the implications are profound.
If courts agree that Google leveraged its dominance unfairly, we may see the start of a more level, more transparent playing field for advertisers or at the very least, a recalibration of digital ad pricing in favour of smaller players.
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