Alphabet's Google (GOOGL) just got hit with a lawsuit that could cost up to 5 billion ($6.6 billion)and it's not coming from regulators this time. A massive UK class action claims Google weaponized its default search engine status to freeze out competitors and force British businesses to overpay for digital ads. Filed at the Competition Appeal Tribunal, the lawsuit says Google struck deals with Android phone makers and paid Apple (NASDAQ:AAPL) to make its search engine the default across devices, locking in market control and pushing ad prices higher than they should've been.
Leading the charge is competition law expert Or Brook, who argues UK businesses had no real choice: if you wanted visibility online, you had to play by Google's rulesand pay up. The claim alleges that Google built a walled garden around search ads, where it not only dominated volume (over 90% of UK searches) but also offered enhanced functionality only through its own channels. Over 200,000 businesses are said to have been impacted. Brook didn't hold back: Google has been leveraging its dominance in the general search and search advertising market to overcharge advertisers.
Google's response? Predictable. The company called the lawsuit speculative and opportunistic, and insists people use Google because it's helpfulnot because they're forced to. But the timing couldn't be worse. Britain's Competition and Markets Authority is already investigating Google's grip on digital ads, and the global antitrust spotlight on Big Tech is only getting brighter. If this legal fight gains momentum, it could mark a major turning point in how digital ad ecosystems are governedand priced.
This article first appeared on GuruFocus.免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。