Millions of Google users in UK could get £100 compensation each due to lawsuit

Google faces a £7 billion legal claim over search engine advertising. A £7 billion legal claim against Google which accuses the tech giant of exploiting its dominant position in the search engine market can proceed to trial, the Competition Appeal Tribunal (CAT) has ruled.

The multi-billion claim, brought by consumer rights campaigner Nikki Stopford, claims the US giant exploited its dominance in the search market to increase advertising costs, which were ultimately passed on to consumers.

Ms Stopford will represent all UK-domiciled consumers aged 16 and over who purchased goods or services from a business selling in the UK which used search advertising services provided by Google. The action is being brought as an opt-out collective action, meaning that everyone in the UK affected is automatically included as a claimant in the case unless they opt out.

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“This green light from the tribunal is a significant victory for UK consumers,” Ms Stopford said. “Almost everybody uses Google as their go-to search engine, trusting it to deliver quality results at no cost. But its service isn’t genuinely free because its dominance has resulted in increased costs for consumers.

“Google has been warned repeatedly by competition regulators. Yet it continues to rig the market to charge advertisers more, which raises the prices they charge consumers. This action seeks to promote healthier competition in digital markets, and to hold Google accountable and ensure that consumers are compensated for the harm caused by its conduct.”

In response to the CAT ruling, a Google spokesman said: “We still believe this case is speculative and opportunistic – we will argue against it vigorously. People use Google because it is helpful; not because there are no alternatives.”

Previous estimates said around 65million people could be included in the class action lawsuit and would get a compensation payment worth around £100 per person if successful.