Google is facing a £5 billion lawsuit in the UK for allegedly stealing from its competitors in the internet search market and exploiting this advantage to overcharge companies for advertising.
A class action lawsuit filed in the Court of Competition Appeals claims that Google has manipulated search results to charge higher prices for ads compared to a fair market scenario.
It is alleged that Google, a part of Alphabet, struck deals with phone manufacturers to make Google the default search engine on IPHONE, preinstalling the Google search app and Chrome browser on Android devices to stifle competition from Apple.
The lawsuit, filed on behalf of numerous companies by competition law experts, argues that Google’s ad offerings give search engines better features and more visibility than its rivals.
A Google spokesperson dismissed the lawsuit as speculative and opportunistic, stating that consumers and advertisers choose Google willingly.
Businesses are said to have no alternative but to use Google Ads for promotion, as securing a spot on Google’s homepage is crucial for visibility and success.
The UK’s Competitive and Markets Bureau is currently investigating Google’s search services and their impact on the advertising market, as Google faces multiple antitrust probes worldwide.
In a recent antitrust case loss in the US, Google faces the possibility of having to restructure its business and divest parts of its advertising technology, impacting its revenue streams and industry practices.
The European Commission has accused Google of violating competition rules by favoring its own services in search results over competitors, potentially resulting in hefty fines.
After the newsletter promotion
President Donald Trump seeks to dismiss antitrust lawsuits against tech companies, while the UK government considers reducing the Digital Services Tax on high-tech firms like Amazon, Google, and Apple.
Source: www.theguardian.com
