Legal Milestone: Competition Appeal Tribunal Certifies Google Advertiser Competition Claim

The Competition Appeal Tribunal (CAT) has certified collective proceedings against Google on an opt-out basis, rejecting Google’s argument that the claim should proceed on an opt-in basis.

The claim, estimated to be worth approximately £5 billion, is brought on behalf of around 880,000 UK businesses that have spent money on Google Search advertising. The CAT’s decision means eligible UK businesses will automatically be included in the proceedings unless they choose to opt out in accordance with the Tribunal-approved process.

KP Law, together with Geradin Partners, is acting for class representative, Dr Or Brook.

The proceedings allege that Google abused its dominant market position. The alleged conduct includes restrictions within the Android ecosystem; agreements and financial incentives designed to secure the pre-installation, prominent placement or default status of Google Search and Chrome; and conduct relating to Search Ads 360 that allegedly disadvantaged competing search-advertising services.

It is alleged that these practices restricted competition, enabling Google to charge advertisers more for search advertising and reducing the return they received from their advertising expenditure.

Emma Birch, Partner at KP Law, said:

“This decision is an important step towards ensuring that UK businesses have an opportunity to seek redress for anti-competitive conduct that may have increased the cost of online advertising over many years.

Digital advertising is fundamental to businesses of every size. Where competition is distorted, the impact can be felt by companies across the UK. We are pleased that the claim can now proceed and that these allegations can be fully examined.

We also welcome the Tribunal’s observation that these are ‘not weak claims’. Certification does not decide the merits of the case, but it is an important step in allowing the claim to move forward.”

Duncan Hedar, Partner and Head of Competition at KP Law, added:

“The Tribunal found that an opt-in process would create significant practical problems, be slow and risk excluding significant numbers of proposed class members, particularly small and medium enterprises.

We agree that an opt-out claim is the fairest and most practical way to provide access to justice for all eligible UK advertisers.”